Kibo Mining Plc has acquired an 85% interest in the Mabesekwa Coal Independent Power Project in Botswana in an all share transaction. This is a major part of Kibo’s strategy focussed on repositioning itself as a strategic regional electricity supplier on the back of its flagship Mbeya Coal to Power Project (MCPP) in Tanzania.
The 85% interest in Mabesekwa is to be acquired from Sechaba Natural Resources Ltd, a subsidiary of Shumba Energy Ltd (Shumba), for 153 710 030 new ordinary shares in Kibo that shall rank pari passu with the existing ordinary shares in Kibo.
The project will consist of a 300 million t subset of the current insitu 777 million t coal Mineral Resource (SAMREC) defined by Shumba at Mabesekwa (MCIPP Resource). The resources that comprise the MCIPP resource will be defined during the detailed due diligence process.
Kibo’s intention is to build on the work completed to date investigating the construction of an integrated power project at Mabesekwa. The project shares notable synergies with Kibo’s flagship Mbeya Coal to Power Project in Tanzania, providing considerable benefits including economies of scale in equipment, execution, project finance and strong existing MCPP strategic partnerships.
Sechaba has retained a 15% interest in the project and will gain a seat on Kibo’s Board of Directors.