KIBO Energy said it had made steps to add short-term cash flow to its medium- to long-term African coal-to-power development plans following a memorandum of understanding with the UK’s Mast Energy Developments (MED).
Kibo will buy a 60% stake in MED in return for Kibo shares to the tune of £300,000 in return for future royalties from MED’s business activities up to a maximum of £2.2m. MED specialises in the development of gas-fired power stations from 20MW upwards in the UK which have the purpose of “balancing out” the national grid at critical times, said Kibo.
Louise Coetzee, CEO of Kibo Energy, said the agreement allowed for “… a distinct short-term revenue generating potential in the UK …” which would “… greatly assist the company’s working capital requirements as it develops its rapidly expanding larger scale energy asset portfolio in Africa”.
In addition, the two parties will work together in creating new opportunities in the UK and southern Africa where Kibo Energy is principally engaged. Coetzee said MED’s expertise may help it access different aspect of the energy market in the continent. “Additionally, it creates a situation where we can expand our product offering and increase our exposure to different sectors of the African energy market,” said Coetzee.
