Africa focused energy company – Kibo Energy has today signed a binding term sheet with Sanderson Capital Partners for the conversion of the latter’s 2.5 percent equity interest in the Tanzanian subsidiary, Mbeya Development Company Limited.
Mbeya Development is the holder of the company’s physical 120.8Mt Coal Resource in Tanzania.
Kibo will issue 126,436,782 new ordinary shares of par value €0.015 to Sanderson in conversion of its 2.5 percent minority interest in Mbeya Development.
The amount of conversion shares is calculated on the basis of a valuation of GBP 66 million for 100 percent of the Mbeya Coal Resource based on the weighted average total of the estimated market value of Mbeya Development’s Coal Resource held under Mbeya Coal LTD and the net present value of the proposed Coal Mine based on a 1.5 million ton per annum production figure as determined in the definitive mining feasibility study for the Mbeya Coal Mine.
“We are very pleased with the agreement reached with Sanderson to convert its underlying interest in Mbeya Development into Kibo PLC shares. Sanderson will now become a true cornerstone institutional investor in Kibo and we are optimistic that Sanderson will also defend its shareholding position in future bringing further stability to the Company’s ongoing funding position,” said Louis Coetzee, CEO of Kibo.
Coetze the development is a strong signal to the market of Sanderson’s confidence in Kibo’s project portfolio which continues to advance on multiple fronts.
“As we seek to address the critical requirement for energy security in sub-Saharan Africa by becoming a leading regional power producer.”
Meanwhile Kibo continues its clarification inquiries regarding the TANESCO decision.
In addition, the company is also continuing to pursue other commercial opportunities for the Mbeya Coal to Power Project (MCPP), previously identified during the development of the MCPP which now present very attractive options given the advanced development status of the project.
According to the company, these include the possibility to develop the MCPP as a dedicated facility for the power export or local private market.