KIBO Mining said it had completed the acquisition of the Mabesekwa Coal Independent Power Project (MCIPP) from Shumba Energy – a transaction that sees Shumba take a 28% stake in Kibo Mining.
“Ideally located in Botswana, which has one of the best credit ratings in sub-Saharan Africa, and like much of Africa suffers from acute energy shortages, the MCIPP has notable similarities with our MCPP in Tanzania,” said Louis Coetzee, CEO of Kibo. He was referring to Kibo’s Mbeya Coal-To-Power Project.
In terms of the transaction, first unveiled in November, Kibo will issue 153.7 million new shares equal to 28% of its enlarged share capital for 85% control of Mabesekwa which contains 777 million tonnes (Mt) of coal of which 300Mt will be made available to Kibo. The seller, a subsidiary company of Shumba, will retain the balance of the shares. The two companies also undertook to provide certain rights to one another.
Kibo will be given first right of refusal to participate in other energy projects Shumba might pursue on equal terms with other potential partners for a six year period. In return, Shumba will be granted a reciprocal right of refusal on certain coal export projects that Kibo might pursue during the same period.
Phumaphi Mashale, MD of Shumba Energy, will also take a board seat in Kibo.
