Wrap Text
Binding Term Sheet to Supply 200MW Energy to Baobab Resources in Mozambique
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: 18 May 2020
Kibo Energy PLC (‘Kibo’ or the ‘Company’)
Binding Term Sheet to Supply 200MW Energy to Baobab Resources in Mozambique
Kibo Energy PLC (‘Kibo’ or the ‘Company’), the multi-asset, Africa focused, energy company is
pleased to announce that it has signed a binding term sheet (the ‘Agreement’) with Baobab Resources
Ltd (‘Baobab’) to supply c. 200MW energy to its Tete Steel and Vanadium Project (‘TSV Project’) in
Mozambique.
Highlights
* Baobab to exclusively deal and negotiate with Kibo regarding entering into a Power Purchase
Agreement (‘PPA’) to supply c. 200MW energy to its TSV Project in Mozambique
* Located approximately 36km away from Kibo’s Benga Power Plant Project (‘Benga’), the
TSV Project is recognised as a key development project in Mozambique
Louis Coetzee, CEO of Kibo, said: “We are delighted to have secured this strategically important
agreement with Baobab. The TSV Project represents one of Mozambique’s key development projects
that could contribute significantly to the growth of the country. We are therefore delighted that our
Benga project will be supporting this growth by providing 100% of TSV Project’s c. 200MW energy
requirements, subject to reaching final agreement on an appropriate PPA. This PPA will be one of a
number of supply agreements we are targeting for Benga, in line with our commitment to creating
reliable, sustainable and affordable electricity in Mozambique and we look forward to providing further
updates in due course as these agreements progress. It is envisaged that the c. 200MW requirement of
the TSV Project will be developed as part of the existing Benga Power Project, and talks are currently
underway with our JV-partners in Benga, to determine whether the latest addition to the Benga
portfolio will have any impact on the economic interest of each JV partner, given Kibo’s added efforts
in increasing the utilisation of Benga.
We look forward to updating the market with further developments in due course”.
Details
Kibo remains focused on developing the Benga Power Plant Project in Mozambique with its joint
venture partner, Termoeléctrica de Benga S.A, which will now comprise a thermal power plant with
min capacity of 350MW, as well as planned renewable energy projects. To this end, it has signed a
binding term sheet with Baobab to supply the complete c. 200MW energy requirements to its TSV
Project.
Located approximately 36km away from Benga, TSV is being developed to produce half a million
tonnes of construction steel per annum and is construction-ready with all licences, concessions, and
agreements in place. This is recognised as a key development project in Mozambique and is set to be
the anchor industry for the Revuboe Industrial Free Zone (‘RIFZ’), Mozambique’s newest and largest
industrial zone.
Under the terms of the Agreement, which is valid until 30 September 2020 (or such extended date as
may be agreed upon in writing between the parties), Baobab agrees to exclusively deal and negotiate
with Kibo with regard to entering into the proposed PPA. Kibo can continue to seek and secure other
PPAs, including the agreement it is currently pursuing with Mozambican state-owned electric utility
Electricidade de Mocambique ('EDM') (see RNS dated 11.05.20 for further information) providing that
such agreements do not negatively affect the uninterrupted supply of 100% of the energy needs and
requirements of the TSV Project.
For more information on Baobab Resources LTD and the TSV Project please follow:
http://www.baobabresources.com/
**ENDS**
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
Philip Adler +44 (0) 20 7392 1494 ETX Capital 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 Ltd Investor and Media Relations
Beth Melluish Adviser
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 UK Reserve Power generation market.
Johannesburg
18 May 2020
Corporate and Designated Adviser
River Group
Date: 18-05-2020 10:45:00
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