GABORONE, Botswana--(BUSINESS WIRE)--The directors of Shumba Coal Ltd ("Shumba" or the "Company") (BSE:SHU) (SEM:SHU) are pleased to announce the execution of a Heads of Agreement ("HOA") between the Company and Mulilo Renewable Project Developments (Pty) Ltd ("Mulilo") for the joint development of the Mabesekwa Export Independent Power Plant ("MEIPP") at the Mabesekwa Coal Project to take part in the South African Coal Base Load IPP programme.
The MEIPP will be a Coal-fired Power Plant with a captive coal mine. Within a two month period following the signing of the HOA, the parties intend to enter into a comprehensive Joint Development Agreement (“JDA”) which shall include detailed conditions of the Partnership. During this period the parties will only negotiate exclusively with each other.
Mulilo is an IPP developer and investor which was originally formed in 2008. Mulilo works closely with project developers, technology providers, regulators and investors to source and develop premier energy projects. Mulilo has developed over the last few years a portfolio of circa 400 MW of grid-connected power plants under various IPP programs run by the Department of Energy in South Africa.
Shumba Chairman Alan M. Clegg commented, “The signing of this HOA with Mulilo is a further landmark development in Shumba execution of our stated strategy and a further testimony to the discipline of management in matching our assets and projects with the best partners under stressed market conditions. Mulilo has a first class track record of delivery which, matches Shumba culture and this will I believe now translate into the creation of a new and strong economic contribution to the Southern African energy market for sustainable development, while creating strong value for our shareholders and all stakeholders alike.”
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Shumba Coal is a Botswana focused local coal mining and energy Development Company listed on the Botswana Stock Exchange and the Stock Exchange of Mauritius and has over 260 shareholders. Shumba Coal intends to develop one or more 300MW or larger power stations in addition to producing coal for domestic and regional consumption.