TIDMKIBO
RNS Number : 3477P
Kibo Energy PLC
09 October 2019
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: 09 October 2019
Kibo Energy PLC ('Kibo' or the 'Company')
Placing to Raise a minimum GBP 1.5 Million
& Project Status Update
Kibo Energy PLC, the multi-asset, Africa focused, energy
company, is pleased to announce that it will be seeking to raise a
minimum of GBP1,500,000 (the 'Placing'), of which GBP1,000,000 (the
'Underwritten Placing') is fully underwritten by TS Capital Limited
('Underwriter') on behalf of TS Capital Clients, at a price of 0.45
pence per share. The proceeds from the Placing will be utilized
primarily to further develop the Company's diverse energy
portfolio, on which a status update is provided below, and working
capital requirements.
Highlights
-- Underwritten Placing for GBP1,000,000;
-- Confirmed GBP500,000 participation in the Placing by
Directors, Management and arranged parties in addition to
GBP1,000,000 Underwritten Placing;
-- Total project portfolio of 1,055 MW power generation capacity
with 355 MW already covered under Heads of Terms ('HoT') Power
Purchase Agreements ('PPA') with the balance in advanced
negotiations with potential private and utility off-takers;
-- Kibo to ultimately transition 100% of its energy generation
capacity to sustainable and affordable renewable energy
generation.
Louis Coetzee, CEO of Kibo, commented, "2018 was
transformational for the Company, as we repositioned Kibo to become
a significant energy solutions provider in Africa and beyond, by
implementing a strategy focussed on providing innovative energy
solutions that will:
-- Guarantee long term sustainability and affordability in electricity supply;
-- Act as key catalyst for socio-economic development priorities
in the various project jurisdictions; and
-- Give priority to implement energy solutions and strategies
that will ensure the lowest possible environmental impact.
To enable and execute this strategy, within the space of 18
months, we built a well-diversified portfolio, and concurrently
developed it to bankable feasibility level, except for the MCIPP,
which is at feasibility level. Our project portfolio therefore not
only provides Kibo with the ideal platform from where it can
execute its corporate strategy but is also strategic in materially
mitigating its country and project risk, whilst taking full
advantage of the lucrative commercial opportunities they presented
in a fast-growing African energy sector.
2019 in turn delivered the first key successes towards the
execution of our corporate strategy; the first HoT power purchase
agreements and HoT definitive coal supply agreements across various
projects were entered into and others are in an advanced stage of
negotiation.
"We are therefore very pleased to have secured a fully
underwritten Placing that also enjoys significant participation by
the Kibo Directors and Management. We view this as a strong vote of
confidence in the Company's value proposition, strategy and ability
to realise this value to its full extent."
Placing and Underwriting
Kibo will be seeking to raise minimum cash proceeds of
GBP1,500,000, with the Underwriter subscribing for up to
GBP1,000,000 of placing shares that are not taken up by third party
investors on completion of the Placing expected to be on or around
16 October 2019.
In addition:
-- The Company has a firm commitment from Directors and
Management and other parties arranged by them including Sanderson
Capital Partners Ltd ("Sanderson"), to participate in the Placing
for GBP500,000 in addition to the Underwritten Placing ('the
Subscription'); and
-- Shares issued in the Placing ("Placing Shares") will have
warrants attached (together with the Placing Shares, "Units") with
each Unit comprising one Placing Share, one warrant exercisable at
0.8p per share for the period of 18 months from the date of issue
and half a warrant exercisable at 1p per share for the period of 36
months from the date of issue.
Details of the shares purchased by Directors and Management are
as follows:
Name Title Price PER Number of shares Shares Held % Holding
SHARE PURCHASED After PURCHASE post PURCHASE
Christian Schaffalitzky Non-Executive
(& related parties) Chairman 0.45p 3,885,000 6,004,842 0.53%
--------------- ---------- ----------------- ---------------- ---------------
Louis Coetzee
(& related parties) CEO 0.45p 11,440,000 19,505,996 1.71%
--------------- ---------- ----------------- ---------------- ---------------
Executive
Tinus Maree Director 0.45p 4,485,600 7,419,800 0.65%
--------------- ---------- ----------------- ---------------- ---------------
Non-Executive
Andrew Lianos Financial
(& related parties) Director 0.45p 9,485,000 17,073,633 1.50%
--------------- ---------- ----------------- ---------------- ---------------
Non-Executive
Technical
Noel O'Keeffe Director
(& related parties) & Secretary 0.45p 3,445,600 7,037,047 0.62%
--------------- ---------- ----------------- ---------------- ---------------
Non-Executive
Wenzel Kerremans Director 0.45p 815,000 1,191,241 0.10%
--------------- ---------- ----------------- ---------------- ---------------
Louis Scheepers COO 0.45p 7,380,600 10,390,514 0.91%
--------------- ---------- ----------------- ---------------- ---------------
Pieter Krugel CFO 0.45p 12,330,000 12,330,000 1.08%
--------------- ---------- ----------------- ---------------- ---------------
Note: Percentage holding post purchase in the table above
assumes GBP1,500,000 is raised at 0.45 pence per share.
The Directors and Management of the Company shown in the above
table are Persons Discharging Managerial Responsibility ("PDMRs")
under the Market Abuse Regulation 2016 ("MAR"). In compliance with
MAR and the Company's Share Dealing Code they have submitted
dealing request forms to the designated Company executives seeking
permission to participate in the Placing and authority has been
granted. Dealing notification form will be completed by the PDMRs
and submitted to the FCA within 3 days of completion of the Placing
in accordance with MAR.
Sanderson have agreed to subscribe for 55,555,556 Placing
Shares, pursuant to the Placing. Sanderson is a related party of
the Company for the purposes of the AIM Rules by virtue of their
status as a substantial shareholder, holding 10% or more of the
existing Ordinary Shares. The Board of Directors consider, having
consulted with the Company's nominated adviser, RFC Ambrian
Limited, that the terms of the transaction are fair and reasonable
insofar as the Company's shareholders are concerned.
Kibo Project Status Update
Project Development: Progress
The Company is continuing to make good progress as it develops a
diverse portfolio of advanced power generation and associated
mining projects in Sub-Saharan Africa and the UK, in collaboration
with several international blue-chip partners with whom Kibo has
established strong working relationships. These include General
Electric, SEPCOIII, Vale Mozambique, Steag Energy Services, ESS Inc
and Statkraft among others. Sovereign risk is significantly and
actively mitigated by managing a portfolio of projects deliberately
located in three different African countries.
This diverse project portfolio positions Kibo favourably to
serve Africa's urgent increasing demand for reliable, sustainable
and affordable electricity. Approximately 60% of Africa's
population is without electricity which includes 620 million people
in Sub-Saharan Africa that currently rely on firewood, kerosene and
charcoal for their energy needs with the associated adverse
environmental impact of using these fuel sources. Kibo's strategy
is to develop its African projects with the latest clean coal
burning technologies, since coal remains the only affordable
electrical energy source in African developing economies. At the
same time, Kibo recognizes the environmental necessity and benefits
of renewable energy generation and therefore actively seeks
opportunities to integrate this technology with the traditional
base load generation solutions in a practical and affordable
manner.
Although presenting in a different shape and form, the energy
crisis is not limited to Africa only. Three years ago, engineers
forecasted an unprecedented "energy gap" in the UK in a decade's
time, with demand for electricity likely to outstrip supply by more
than 40%, which could lead to blackouts. Kibo identified this as an
ideal opportunity which compliments its strategy and hence Kibo's
participation in the MAST Energy Developments projects which is
expected to start providing Flex Power (dispatchable power) into
the UK grid from early 2020.
As an example of its commitment to sustainable and affordable
clean electricity generation and the Company's objective to
ultimately transition 100% of the company's total energy portfolio
to renewable power generation, the Company has recently partnered
with ESS, a US company which has developed iron flow battery
technology that offers more than double the operating lifetime and
cycle capacity of lithium-ion battery storage systems, with a
non-flammable chemistry and minimal maintenance requirements. ESS
is currently producing batteries with this technology to help
utilities defer major capital expenditures on distribution
equipment by storing energy during times of lower demand or excess
supply and releasing energy when demand peaks. These innovative
energy storage systems can enhance the availability of fossil fuel
generation plants, shifting to a more sustainable model over time
and Kibo is working closely with ESS to utilize the proven benefits
of these storage systems in its coal fired power plants. Further
detail on the Company's transition strategy to 100% renewable
generation will be provided in due course.
Kibo's project portfolio comprises of a portfolio of
well-advanced, innovative projects as illustrated below:
-- Mozambique:
Benga Power Plant Project, Mozambique (65% interest) - This
project is Kibo's first pure energy project, which is supported by
both its Joint Venture partner, a local energy company
Termoeléctrica de Benga S.A., and the Government. The Company
recently delivered a DFS and subsequently signed term sheets for
coal supply and power purchase agreements with Vale Mozambique,
S.A., and continues encouraging discussions with Electricidade de
Moçambique ('EDM') under the existing MoU as part of the PPA
process.
-- Botswana:
o Mabesekwa Coal Independent Power Project, Botswana (85%
interest) - this integrated Project comprises 300-600 MW coal fired
power plant and is currently at definitive feasibility stage. The
Project has a clear development path ahead, with achievable
short-term deliverables.
o KP1 - a bespoke 300MW power station, envisaged to provide
power to a Petrochemical plant ('PCP') which will provide first
Botswana, with up to 80% of its domestic liquid / gas fuel
requirements, and later the Southern African market at large. (See
RNS dated 25 September 2019)
o Kibo Energy Botswana - that owns a coal resource of 761
million tonnes with the following coal supply arrangements (See RNS
dated 25 September 2019):
-- Supply of approximately 4.5 million tonnes p/a to PCP for
which a binding Coal Supply Agreement already exists;
-- Supply of approximately 1.5 million tonnes p/a to KP1 to
satisfy 100% of its fuel needs; and
-- Supply of approximately 1.5 million tonnes p/a to the MCIPP
Power Station to satisfy 100% of its fuel needs.
-- Tanzania:
Mbeya Coal to Power Project (MCPP), Tanzania (100% interest) - a
project fully developed to construction ready status, comprising of
a 39 MT mineable reserve and a 300-600 MW power plant is making
headway and remains an exciting opportunity as highlighted by the
recent confirmation from TANESCO that Kibo has the option to
develop the project for the severely undersupplied power export
market. Kibo is actively pursuing the export market alongside
opportunities within the domestic market. Recently, the Company was
granted seven Mining Licences and the Project's Water Permits was
successfully renewed, showing continued dedicated work, progress
and development on the MCPP.
-- United Kingdom:
Mast Energy Development Ltd, UK (60% interest) - this company is
looking to support the UK energy mix with much needed flexible
energy projects by developing a portfolio of small-scale power
generation assets. To this end, one site has already been acquired
and due diligence on several others are nearing conclusion.
Notably, Kibo has a direct 100% interest in the shovel-ready
reserve power generation project, Bordersley Power Limited, which
is expected to commence commercial production towards the end of Q1
2020. With a PPA now in place with Statkraft, the Company
anticipates that revenues from this project will contribute
significantly to ongoing Kibo Group funding requirements.
**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:
Louis Coetzee info@kibo.energy Kibo Energy PLC Chief Executive Officer
Andreas Lianos +27 (0) 83 4408365 River Group Corporate and Designated
Adviser on JSE
--------------------- --------------------- -------------------------
Jason Robertson +44 (0) 20 7374 2212 First Equity Limited Joint Broker
--------------------- --------------------- -------------------------
Bhavesh Patel/Stephen +44 20 3440 6800 RFC Ambrian Limited NOMAD on AIM
Allen
--------------------- --------------------- -------------------------
Isabel de Salis +44 (0) 20 7236 1177 St Brides Partners Investor and Media
/ Ltd Relations Adviser
Beth Melluish
--------------------- --------------------- -------------------------
Notes
Kibo Energy PLC is a multi-asset, Africa focused, 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 has a 60% interest in MAST Energy
Developments Limited ('MED'), a private UK registered company
targeting the development and operation of flexible power plants to
service the Reserve Power generation market.
Johannesburg
09 October 2019
Corporate and Designated Adviser
River Group
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END
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