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Kibo Energy said its 60% owned subsidiary, MAST Energy Developments, had issued a preliminary notice to proceed with the construction and commissioning of the 5MW gas-fuelled power generation plant at Bordersley Power.
The plant was targeted for commercial commissioning at end of the first quarter of 2020 and was the first reserve power generation project being developed by MAST Energy Developments (MED), which was focused on building its initial portfolio of 100MW, the company said.
The preliminary notice triggered the payment of the next tranche of shares to the original MED vendors, St' Anderton on Vaal Limited, following the agreement for Kibo to consolidate full ownership of Bordersley by acquiring all of St' Anderton's direct and indirect interests in Bordersley.
St' Anderton would be issued 6m shares in Kibo at a deemed issue price of £0.0525 per share.
'We believe MED to be highly complementary to our portfolio of coal-to-power projects in Africa which includes the Mabesekwa Coal Independent Power Project in Botswana and the Benga Power Plant Project in Mozambique,' said Louis Coetzee, CEO of Kibo Energy.
'We see a distinct opportunity in our business model and through our network of international advisors, and we remain focused on navigating the intricate agreements needed to bring our projects into commercialisation. '