CIC Energy enters into agreement with a leading Japanese company

CIC Energy Corp has made an announcement that along with its partner International Power PLC it has entered into a preliminary agreement with Sumitomo Corporation – a leading Japanese company operating in various sectors including mineral resources, energy, media and electronics, finance and logistics. The agreement concerned the possible subscription of a 20% equity interest in the first phase of the Mmamabula Energy Project.

The preliminary agreement does not commit Sumitomo to equity participation in the Mmamabula Project, but demonstrates company’s interest in the Project.

Currently, the BVI-based CIC Energy and IPR together are the holders of 50% interest in the Mmamabula Project.

Sumitomo has entered into negotiation with CIC Energy and IPR, on the possible subscription of a 20% interest in Meepong Energy (Mauritius) Pty Ltd. To facilitate this, CIC Energy and IPR would be expected to equally sell down a part of their respective equity stakes. Meepong Energy (Mauritius) is the joint venture company which will hold the power station assets of Phase One of the Project.

The above-mentioned agreement also provides the option for Sumitomo to take a 20% interest in Meepong Resources (Mauritius) Pty Ltd. If this occurs, the balance of this holding company is expected to be held equally by CIC Energy and IPR.

Meepong Resources is the joint venture company, which will hold the coal mine for Phase One of the Project. Meepong Energy (Mauritius) will hold the power station assets of Phase One of the Project.

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