Kibo Mining signs strategic development agreement with Chinese power contractor

As part of the agreement, SEPCOIII, one of the world's largest power EPC contractors, committed to a two-stage equity investment into Kibo, endorsing the company's strategy and its position in the African power market, providing the firm with funds to fulfil its capital requirements over the short-to-medium term.

SEPCOIII will make an initial direct equity investment into 10-15% of Kibo's entire issued share capital and will retain the option to pick up another 5-10% within 18 months.

Kibo's chief executive, Louis Coetzee, said, "This is excellent news for Kibo on multiple levels: it is a major endorsement by one of the world's largest power EPC contractors of both our portfolio and strategy aimed at alleviating the acute energy deficit in Africa; it provides us with short to medium term cash stability, and it further strengthens our network of key partners and institutional investors to support us as we advance our portfolio of energy projects."

"The SDA is the fruition of many months of negotiating with SEPCOIII, which recognises our position as a bridgehead into the African energy arena," added Coetzee.

As of 1025 BST, Kibo shares had climbed 6.18% to 4.51p.