- Kibo Energy said it had signed a series of agreements with Shumba Energy to restructure its subsidiary in Botswana as part of a move to significantly lower development and execution risk.

Under the agreement, the company's subsidiary, Kibo Energy Botswana, would be restructured, providing Kibo with a 35% interest in the company, which held a total 761m tonnes of coal resource and had three large customers.

This followed an announcement in September, when Kibo signed a binding heads of agreement with Shumba to consolidate the retained assets of its Mabesekwa coal power project into Kibo Energy Botswana.

An additional joint venture, 'KP2,' between Kibo and Shumba was formed to advance the existing energy projects in Botswana agreed 85% to 15% split respectively.

Kibo and Shumba also agreed to jointly manage and oversee the development of a bespoke 300MW power station, 'KP1,' on a 35% to 40% split.

These remaining agreements, KP1 and KP2, were on track to be completed by 20 March 2020.

'The agreement gives Kibo access to a revenue stream from an estimated annual coal production of 7.5Mt coal per annum,' it added.

At 9:02am: [LON:KIBO] Kibo Mining share price was +0.05p at 0.5p

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