Tanzanian mineral resources company Kibo Mining has signed a strategic development agreement (SDA) with Chinese EPC contractor SEPCOIII to help it develop a portfolio of energy projects.
As part of the SDA, SEPCOIII has committed to a two-stage equity investment into Kibo, endorsing the Company’s strategy and its position in the African power market.
Strategic relationship provides Kibo with one of the world’s largest power EPC contractors to execute its three existing energy projects and any additional future energy projects;
Equity investments will provide Kibo with the funds necessary to fulfil its capital requirements over the short to medium term and endorse the Company’s strategy to position the Kibo as a leading regional energy player in Africa;
Significant advantages of having an intentional recognised industry leader’s support and resources in both project fulfilment, development and financing negotiations; and
Kibo believes SEPCOIII’s involvement in EPC and equity finance endorses and underpins Kibo’s business model.
Kibo CEO 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.
“Crucially, SEPCOIII’s commitment of support significantly strengthens Kibo’s position in project development paths as well as future financing negotiations due to its international reputation and record of delivery of large scale utility energy projects globally.
Source: Company Press Release