Botswana – African Energy Resources (AFR) has executed a binding term sheet with an “experienced South Africa project developer for the sale of its 100% owned Mmamantswe coal and power project.
The sale is certain to the following conditions:
- The developer will from a bid consortium which will sole fund the preparation and submission of a bid into South Africa’s coal-fired base load IPP procurement programme using the Mmamantswe project.
- AFR will be paid an initial sum of US$10 million if the project bid is short-listed by South Africa’s Department of Energy.
- On receipt of the initial $10 million, AFR will transfer ownership of its shares in the Mmamantswe project company to the developer.
- AFR will receive a second payment of $10 million if the project reaches financial close.
AFR has retained 100% of its Mmamabula West coal and power project in Botswana and a 49% project interest in the Sese JV (51% owned and managed by First Quantum).
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