Kibo Mining PLC (LON:KIBO) shares rose on Tuesday on news it has signed a Strategic Development Agreement (SDA) with China-based SEPCOIII, one of the world's largest power engineering, procurement and construction contractors, to work with Kibo towards enhancing its strategy and the development of its portfolio of energy projects.
As part of the SDA, SEPCOIII has committed to a two-stage equity investment into Kibo, endorsing the company's strategy and its position in the African power market.
READ: Kibo Mining’s transformation into a pure energy company is now well underway
The equity investments will provide Kibo with the funds necessary to fulfil its capital requirements over the short to medium term and also serve to endorse Kibo’s strategy to become a leading regional energy player in Africa.
"This is excellent news for Kibo on multiple levels,” said chief executive Louis Coetzee.
“It is a major endorsement by one of the world's largest power EPC contractors of both our portfolio and strategy aimed at alleviating the acute energy deficit in Africa. It provides us with short to medium term cash stability; and it further strengthens our network of key partners and institutional investors to support us as we advance our portfolio of energy projects.”
In late morning trading, Kibo shares were 8.2% higher at 4.6p.
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