Kibo Energy PLC (Incorporated in Ireland)
(Registration Number: 451931)
(External registration number: 2011/007371/10)
LEI Code:
635400WTCRIZB6TVGZ23
Share code on the JSE Limited: KBO
Share code on the AIM: KIBO
ISIN: IE00B97C0C31
('Kibo' or 'the Company')
Dated: 21 May 2024
Kibo Energy PLC ('Kibo' or the 'Company')
Kibo Subsidiary Announces
Business Update
Kibo Energy PLC (AIM: KIBO; AltX: KBO), the renewable
energy-focused development company, announces a business update by
its subsidiary Mast Energy Developments PLC ('MED'), a UK-based
multi-asset owner, developer and operator in the rapidly growing
flexible power market.
Further details can be found in the full
MED RNS Announcement, which is available below and at
med.energy.
-------------------------
Dated: 21 May 2024
Mast Energy Developments PLC
('MED' or 'the Company')
Business
Update
Mast Energy Developments PLC, the
UK-based multi-asset owner, developer and operator in the rapidly
growing flexible power market, is pleased to announce an update
regarding business operational and corporate matters.
Pyebridge
Further to the Company's previous
announcements dated 11 April 2024, 26 April 2024 and most recently
7 May 2024 respectively, Pyebridge has received the 2nd
Advance from RiverFort under the Funding Agreement, and it has made
the associated payments to the site's O&M contractor, Cooper
Östlund in terms of the Engineering Works contract regarding the
full long-block overhaul of the first genset. The replacement
genset has been shipped from the supplier, PowerUp in Austria, and
is expected to arrive on site shortly. The necessary preparatory
works on site to replace the existing genset with the refurbished
unit are well advanced and on track. The expected timeline to
completion of the work and commercial operations date of the
refurbished genset as previously announced remains on
schedule. The 2nd Advance also
enables the acceleration of the overhaul of the first genset, and
once the work is completed will result in a significant increase in
additional revenue from the Pyebridge site and more importantly
sooner than expected.
In the meantime, the site's other
two gensets remain operational and will continue to generate
revenue via its PPA with Statkraft. Additionally, Pyebridge will
also keep receiving its current Capacity Market contract income
from the government.
Project Capex Funding
Further to the Company's previous
announcement dated 11 April 2024, most of MED's sites under
development are either ready for construction, or already in
early-stage construction. The progression of construction and
commercial operations are subject to securing project capex
funding. In order to address this key next step in respect of these
projects' development lifecycle i.e. to get each project into
production and generating revenue, MED is actively progressing
discussions with various potential debt and equity funders. These
discussions include banking institutions that have shown interest
in providing funding.
JVA
with Proventure Termination Update
Further to the Company's previous
announcement dated 28 February 2024, stating Proventure's failure
to remedy its material breach of the JVA, together with the
exhaustive correspondence and actions on MED's part to accommodate
and resolve the persistent delays by Proventure to fulfil its
obligations under the JVA, the MED Board has decided to terminate
the JVA with Proventure as previously announced. Under the
provisions of the JVA and subsequent JVA Deed of
Termination, MED is entitled to receive,
and Proventure has an obligation to pay default penalties, in the
sum of c. £435,000 (the "Default Penalties"). The Default Penalties
have formally been accepted by Proventure, but regrettably none of
the required Default Penalties, nor any part thereof have been paid
to date. The Company subsequently reviewed
the matter with its legal advisers, and is currently considering
various options that will allow the Company to pursue the matter by
taking appropriate further action against Proventure, its CEO,
Mr. Srinivas Kona and other directors aimed at but not
limited to recovering the Default
Penalties.
In conjunction with the above, MED
is also considering pursuing its available options for legal
recourse against the initial JVA lead-investor, Seira
Capital and its CEO, Mr. Srinivas Tangirala and other
directors.
Pieter Krügel, MED CEO, commented: "We are pleased that
the overhaul of the first genset at Pyebridge is progressing well
and on schedule. We are looking forward to completing the overhaul
work within the expected timeline, and to move forward with the
overhaul of the remaining two gensets. In the meantime, Pyebridge
is operational and generating income.
"Concurrently we are actively progressing discussions with
various interested funders regarding the capex funding of MED's
construction-ready sites, in order to get each project into
production and revenue generation as quickly as
possible.
"We are looking forward to updating the market with further
progress across the board in due course."
ENDS
This announcement contains inside information for the purposes
of the UK version of the Market Abuse Regulation (EU No. 596/2014)
as it forms part of United Kingdom domestic law by virtue of the
European Union (Withdrawal) Act 2018 ('UK MAR'). Upon the
publication of this announcement, this inside information is now
considered to be in the public domain.
For further information please
visit www.med.energy or contact:
Pieter Krügel
|
info@med.energy
|
Mast Energy Developments
PLC
|
CEO
|
Jon Belliss
|
+44 (0)20 7399 9425
|
Novum Securities
|
Corporate Broker
|
_________________________
**ENDS**
For further information please visit
www.kibo.energy or
contact:
Louis Coetzee
|
info@kibo.energy
|
Kibo Energy PLC
|
Chief Executive Officer
|
James Biddle Roland
Cornish
|
+44 207 628 3396
|
Beaumont Cornish Limited
|
Nominated Adviser
|
Claire Noyce
|
+44 20 3764 2341
|
Hybridan LLP
|
Joint Broker
|
Damon Heath
|
+44 207 186 9952
|
Shard Capital Partners
LLP
|
Joint Broker
|
Beaumont Cornish Limited ('Beaumont Cornish') is the Company's
Nominated Adviser and is authorised and regulated by the FCA.
Beaumont Cornish's responsibilities as the Company's Nominated
Adviser, including a responsibility to advise and guide the Company
on its responsibilities under the AIM Rules for Companies and AIM
Rules for Nominated Advisers, are owed solely to the London Stock
Exchange. Beaumont Cornish is not acting for and will not be
responsible to any other persons for providing protections afforded
to customers of Beaumont Cornish nor for advising them in relation
to the proposed arrangements described in this announcement or any
matter referred to in it.
Johannesburg
21 May 2024
Corporate and Designated Adviser
River Group