Kibo Energy has finalized a share sale agreement with Shumba Energy for the sale of its remaining 35% equity holding in Kibo Energy Botswana, which holds coal resources linked to the Mabasekwa Coal to Power Project. As of December 31, 2022, the carrying value of the project was £nil, with an associated loss before tax of £3.56 million, primarily due to a full impairment of the carrying value during that period.

The sale to Shumba is valued at $375,000, to be paid in ordinary shares in Shumba's authorized unissued share capital, listed on the Botswana Stock Exchange. The calculation will be based on the volume-weighted average price of Shumba's shares traded over the 30 days preceding the issue date, rounded to the nearest whole shares.

This divestiture aligns with Kibo's strategy to sell off all hydrocarbon and coal-based assets while focusing on acquiring and developing sustainable, renewable energy assets. The company continues to engage with potential funding sources to ensure sufficient resources for its ongoing working capital needs.

Louis Coetzee, CEO of Kibo Energy, stated, "Our next aim is to progress ongoing negotiations for the disposal of the company’s Tanzanian coal assets, and we will update the market in this regard in due course."