Kibo Mining Plc said July 3 that it has entered into a strategic development agreement with a Chinese construction and engineering company, SEPCOIII, to advance the former's portfolio of existing and future energy projects.
SEPCOIII has committed to a two-stage equity investment into the company, which will provide necessary capital funding over the short to medium term.
SEPCOIII has agreed to an initial direct equity investment of 10% to 15% of Kibo's issued share capital for cash at a currently undetermined price. Meanwhile, it has secured an option to make a second direct equity investment, within 18 months, of 5% to 10% of Kibo's issued share capital.
Additionally, SEPCOIII has the right to become the sole bidder for all of Kibo's existing and future engineering, procurement and construction contracts.
SEPCOIII's right to be sole bidder on the relevant contract will terminate if the parties fail to agree on price and terms within 90 days of bid submission.
Kibo owns a 97.50% stake in the Mbeya coal-to-power project in Tanzania, an 85% interest in the Mabesekwa coal property in Botswana and recently entered a joint venture deal for the Benga independent power project in Mozambique.