Completed Sale of Haneti Nickel Project

RNS Number : 5217I

Kibo Energy PLC

26 November 2018

 

Kibo Energy PLC (Incorporated in Ireland)

(Registration Number: 451931)

(External registration number: 2011/007371/10)

Share code on the JSE Limited: KBO

Share code on the AIM: KIBO

ISIN: IE00B97C0C31

("Kibo" or "the Company")

Dated: 26 November 2018

Kibo Energy PLC ('Kibo' or the 'Company')

Completed Sale of Haneti Nickel Project

Further to its announcement on 22 June 2018, Kibo Energy plc (AIM: KIBO; AltX: KBO), the multi-asset Africa-focused energy company, announces that Kibo Mining (Cyprus) Ltd, its wholly owned subsidiary, has completed the sale of Kibo Nickel Limited ('Kibo Nickel') to Katoro Gold Ltd ('Katoro') in an all share transaction (the 'Sale'), following receipt of relevant regulatory approvals.  The Sale is consistent with Kibo's strategy to focus on the development of its three energy projects as it becomes a major regional power player in Africa.

Louis Coetzee, Kibo's CEO, said, "Whilst we recognise the potential of the Haneti Nickel Project, the Board believes that it is better placed within Katoro's portfolio as Kibo progresses towards becoming a leading regional energy company.   This sale enables us to focus exclusively on the advancement of our portfolio of energy projects in Tanzania, Botswana and Mozambique.  Progress is being made in the development of each project and we continue to work closely with the different governmental and national bodies, as well as our international development partners including General Electric and SEPCOIII.  I look forward to updating shareholders with relevant updates throughout the rest of the year."

Terms of Sale

Under the terms of the Sale, Kibo has sold its wholly owned subsidiary, Kibo Nickel, a private company incorporated in the Republic of Cyprus, to Katoro for 15,384,615 new ordinary shares in Katoro at a price of 1.3p per share (valued at £200,000) ('Consideration Shares').  The Consideration Shares will be issued to Kibo upon transaction completion and will rank pari passu with the existing Ordinary Shares. Kibo will also retain a 2% NSR royalty in respect of nickel or mineral concentrates produced and sold from any of Kibo Nickel's properties.

On admission of the Consideration Shares for trading on AIM, Kibo will hold 82,987,179 Ordinary Shares in Katoro, representing 55.53% of the enlarged share capital of Katoro.

**ENDS**

 

This announcement contains inside information as stipulated under the Market Abuse Regulations (EU) no. 596/2014 ("MAR").

For further information please visit www.kibo.energy or contact:

Louis Coetzee	[e-mail]	Kibo Energy PLC	Chief Executive Officer
Andreas Lianos	[phone]	River Group	Corporate and Designated Adviser on JSE
Ben Tadd / Tom Curran	[phone]	SVS Securities Limited	Joint Broker
Jason Robertson	[phone]	First Equity Limited	Joint Broker
Andrew Thomson	[phone]	RFC Ambrian Limited	NOMAD on AIM
Isabel de Salis / Gaby Jenner	[phone]	St Brides Partners Ltd	Investor and Media Relations Adviser

Notes to editors

Kibo Energy PLC is a multi-asset, Africa focussed, energy company positioned to address the acute power deficit, which is one of the primary impediments to economic development in Sub-Saharan Africa. To this end, it is the Company's objective to become a leading independent power producer in the region.

Kibo is simultaneously developing three similar coal-fuelled power projects: the Mbeya Coal to Power Project ('MCPP') in Tanzania; the Mabesekwa Coal Independent Power Project ('MCIPP') in Botswana; and the Benga Independent Power Project ('BIPP') in Mozambique. By developing these projects in parallel, the Company intends to leverage considerable economies of scale and timing in respect of strategic partnerships, procurement, equipment, human capital, execution capability / capacity and project finance. Additionally, the Company will benefit from its robust and experienced international blue-chip partnership network across its project portfolio, which includes: SEPCOIII (China), General Electric (USA); Tractebel Engineering (Belgium); Minxcon Consulting (South Africa); ABSA / Barclays Africa; and Hogan Lovells International LLP.

Johannesburg

26 November 2018

Corporate and Designated Adviser

River Group

 

END

 

 

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