Kibo Mining PLC (LON:KIBO) is to acquire a power station development in Botswana to leverage the knowledge acquired from its Mbeya project in Tanzania.
The group will acquire an 85% stake in Mabesekwa from Sechaba, a subsidiary of Shumba Energy, for about £9mln to be paid in shares.
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Louis Coetzee, Kibo’s chief executive, described it as a "fantastic opportunity" especially as it was located in Botswana.
“The synergies with our flagship MCPP [Mbeya] project in Tanzania are impossible to ignore, placing us in a strong position to utilise our knowledge and contacts to rapidly advance both projects to production in a short time-frame.”
Like Mbeya, Mabesekwa will be a power plant based on coal produced from a resource at the site.
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The project will utilise 300Mt of the existing 777Mt coal resource.
Shumba, an established African power producer, will retain a 15% stake in the new company to be set up to develop Mabesekwa.