REG - Kibo Energy PLC - Sale of Coal Interest in Botswana Power Project

Kibo EnergyAnnouncement

04/10/2023 07:15

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RNS Number : 5748O  Kibo Energy PLC  04 October 2023

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: 04 October 2023

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

 

Kibo Energy Enters into Agreement for Sale of its Coal Interest in Botswana
Coal-Based Power Project ("the Project")

 

Kibo Energy PLC (AIM: KIBO; AltX: KBO), the renewable energy-focused
development company, is pleased to announce that pursuant to the Company's
declared strategy to divest of all its coal assets, Kibo has entered into a
definitive share sale agreement ("the Agreement") with Shumba Energy (Pty) Ltd
('Shumba') for the sale of the Company's remaining 35% equity holding in Kibo
Energy Botswana Pty (Ltd) ("Kibo Energy Botswana") in which Kibo held its
interest in the coal resources associated with the Project .

 

Kibo Energy Botswana consists of the Mabasekwa Coal to Power Project, which
had a carrying value of £nil as at 31 December 2022 with an associated loss
before tax of £3.56m, largely reflecting a full impairment of the carrying
value in that period.

 

The sale to Shumba is for a consideration of US$375,000 (three-hundred and
seventy-five thousand dollars) ("the Purchase Consideration") which is payable
by means of ordinary shares in the authorized unissued share capital of
Shumba, listed on the Botswana Stock Exchange ('BSE'), calculated on the basis
of the volume-weighted average price of shares in Shumba as traded over 30
(thirty) trading days prior to the issue date, and rounded up or down to the
nearest number of whole shares.

 

The disposal of the Company's coal interest in the Project is part of the
Company's declared strategy to divest from all all hydrocarbon and coal-based
assets and it also contributes to the Company's ongoing actions to ensure that
the Company continues to have access to sufficient funding resources if and
when required. In this regard the Company is also continuously in discussions
with various potential funding sources to ensure that the Company has
sufficient means for its ongoing working capital needs.

 

Louis Coetzee, CEO of Kibo Energy, says: "This sale is in line with Kibo's
commitment to its renewed strategy to acquire and develop a portfolio of
sustainable, renewable energy assets and implement an appropriate disposal and
disinvestment or repositioning of all hydrocarbon and coal-based assets. Our
next aim is to progress ongoing negotiations for the disposal of the Company's
Tanzanian coal assets and we will update the market in this regard in due
course."

 

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

 

**ENDS**

 

For further information please visit www.kibo.energy (http://www.kibo.energy/)
or contact:

 

 Louis Coetzee                 info@kibo.energy (mailto: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
 Zainab Slemang van Rijmenant  zainab@lifacommunications.com (mailto:zainab@lifacommunications.com)  Lifa Communications         Investor and Media Relations Consultant

 

Johannesburg

04 October 2023

Corporate and Designated Adviser

River Group

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