By Oliver Griffin
Shares in Kibo Energy rose Thursday after the company said it has signed a power-purchase term sheet and a coal-supply term sheet with Vale SA business in Mozambique for its Benga Power Plant Project.
The Africa-focused energy company said the power-purchase term sheet is for an offtake agreement for 37% of the power that it expects to generate in the first phase of the Benga Power Plant Project, in which it holds a 65% stake.
Kibo Energy also said that under the terms of the coal-supply term sheet, Vale will supply the total coal requirement for the plant over its modelled 25-year life.
The signing of the term sheets will pave the way for further integration possibilities between Vale and Kibo Energy, the company said.
Shares at 0813 GMT were up 6.7% at 0.80 pence.
Write to Oliver Griffin at firstname.lastname@example.org; @OliGGriffin