20:50 Tue 21 May 2019
Kibo Energy PLC - Update on MAST Energy Developments Limited
(Registration Number: 451931)
(External registration number: 011/007371/10)
Share code on the JSE Limited: KBO
Share code on the AIM: KIBO
ISIN: IE00B97C0C31
("Kibo" or "the Company")
Dated: 21 May 2019
Update on
Highlights
· MED has today executed a Sale and Purchase Agreement ("SPA") to acquire
· Bordersley will comprise a 5MW gas-fueled power generation plant, supported by:
o an option to lease the land which would be the project site ("Option for Lease")
o a Grid Connection Offer (to be novated to Bordersley); and
o a Gas Connection Offer (to be novated to Bordersley)
· Completion of the acquisition is subject to satisfaction or waiver of the Conditions Precedent by the Longstop Date of 14 to 21 working days from the date of SPA execution:
o Novation of the Grid Connection Offer and Connection Offer Novation to Bordersley
o Completion of the Option to Lease novation to Bordersley
o Completion of a deed of variation of the Option for Lease pursuant to which
o Receipt of various planning and title permissions and reports
o Comprehensive technical and economic Due Diligence performed to MED's satisfaction
· If the Conditions Precedent have not been satisfied or waived on or before the Longstop Date the SPA shall terminate on the day after the Longstop Date unless an extension is mutually agreed
· Completion shall take place on the fifth business day after the fulfilment or waiver of the last of the Conditions Precedent or any other date agreed by the Seller and the Buyer in writing
· On Completion:
o MED will pay Balance
o The existing directors and officers of Bordersley to resign, with
· Warranties, representations and undertakings typical of a transaction of this nature are included
· Engineering, Procurement and Construction ("EPC") proposals have been received and multinational Clarke Energy has been selected as the preferred EPC contractor, and peaking power generation construction specialists Encora Energy selected as preferred Owners Engineer
· Subject to successful financial close and notice to proceed, and no external connectivity delays, targeting commercial commissioning of the Bordersley site in late Q4 2019 / Q1 2020
EPC
Following the completion of a full evaluation of EPC suppliers for MED's targeted portfolio, Clarke Energy has been selected as the preferred supplier. MED will now negotiate turnkey EPC Contracts with Clarke Energy as its preferred partner and immediately commence with the contract negotiations.
Clarke Energy is a multinational specialist in the engineering, installation and maintenance of reciprocating engine-based power plants and gas engine compression stations. Clarke Energy's offering ranges from the supply of an engine, through to the turn-key installation of a multi-engine power plant, and its facilities deliver fuel efficiency and help reduce carbon emissions.
Clarke Energy is the largest authorised distributor and service provider for Jenbacher reciprocating engines, having commissioned more than 3,500 engines worldwide. It has over 85 field-based Service Engineers operational in the
Owners Engineer (OE)
Returns and Finance
Robust financial analysis of Bordersley supporting the acquisition has been concluded by MED with inputs from a wide array of market participants.
MED intends to source external financing to fund any potential development of Bordersley, and in furtherance of that objective negotiations are ongoing between MED and several parties for various forms of mezzanine debt equity, equity linked instruments and convertible notes.
The estimated capital expenditure ("CapEx") for the project is
At this stage it is not anticipated that Kibo will be required to fund MED's development of Bordersley.
Route to Market Agreement- Power Purchase Agreement
MED is engaged in negotiations with
MED is in the process of appointing an
MED continues to focus on the development of their pipeline of peaking power sites with its emphasis shifting from 33kva sites to 11kva sites. This is expected to provide superior returns in the medium and long term with concomitant lower costs.
In addition to the current sites under exclusivity (as per previous RNS') MED has also negotiated exclusivity at no cost for an additional site of 7Mw and Kibo will update on progress in due course.
**ENDS**
This announcement contains inside information as stipulated under the Market Abuse Regulations (EU) no. 596/2014.
For further information please visit www.kibo.energy or contact:
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info@kibo.energy |
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Chief Executive Officer |
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+27 (0) 83 4408365 |
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Corporate and Designated Adviser on JSE |
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+44 (0) 20 3700 0093 |
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Joint Broker |
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+44 (0) 20 7374 2212 |
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Joint Broker |
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+61 8 9480 2500 |
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NOMAD on AIM |
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+44 (0) 20 7236 1177 |
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Investor and Media Relations Adviser |
Notes
Kibo is simultaneously developing three similar coal-fuelled power projects: the Mbeya Coal to
Additionally, the Company has a 60% interest in
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