Benga, located in the Tete province of Mozambique, is the Company’s first pure energy project and the intention is to develop a coal-fired power station with feedstock provided by local coal producers.

An optimised Definitive Feasibility Study (“DFS”) on the Benga Project is already in place, as well as an MoU with Electricidade de Moçambique (“EDM”); the major public company in Mozambique for the generation, transmission, and distribution of electricity, to collaborate in the development of a coal-fired power plant and negotiate a Power Purchase Agreement (“PPA” for the off-take of 150 MW power. Kibo has recently updated the “DFS” to provide for the generation and off-take of an additional 200 MW power to supply a nearby major industrial project (Baobab Resource’s Tete Steel & Vanadium Project) for which a binding term sheet is in place. The Company also has a Term Sheet (for a Coal Sale Agreement (“CSA”)) in place  with major Brazilian miner, Vale, for the supply of coal to Benga.

The JV holds a total of 404  hectares of land, which includes the initial five-year lease title over 59 hectares of unimproved land that is expected to be extended for 50 years once a power plant is under construction as well as the recently added c. 345 hectares.  The land will be utilised for the construction of the coal fired power plant and associated infrastructure.

The updated Definitive Feasibility Study required by authorities is now complete and as well as evaluating the feasibility of constructing a 350 MW coal-fired power plant, it also includes an environmental and impact assessment (near completion) and a grid integration study (completed).