Chariot Oil & Gas Limited agreed to acquire a renewable and hybrid power developer in a deal worth up to US$2mln, paid mostly in shares.
Africa Energy Management Platform (AEMP) has an existing partnership in solar and wind power with Total Eren, which is 30% owned by French energy major Total.
AEMP and Total Eren are working to provide clean, sustainable, and more competitively priced energy to mining operations in Africa.
It is an opportunity that’s described as “a giant, largely untapped market”. Moreover, Chariot highlighted that it is a business area where its management brings numerous high-level contacts.
Presently, the venture has a pipeline of some 500 megawatts of projects (aggregate power requirements).
Alongside the acquisition, the company will be rebooted with a new name - “Chariot Transitional Energy".
“We believe this move will provide Chariot with numerous further valuable, exciting and scalable projects that complement and build on our value accretive Transitional Gas project in Morocco,” said Adonis Pouroulis, Chariot’s acting chief executive.
“The acquisition also plays to Chariot's and its managements' significant experience and other business interests within the mining sector in Africa.
“We are already well advanced in adding to the project pipeline and we look to forward to announcing these when appropriate. This is clearly a 1+1=3 type transaction for all parties.”
Pouroulis added: “The last nine months has been a busy and transformational period for Chariot under its new management team and over the coming period we will continue to look for other energy transition ventures which will further complement and build upon the high value projects we are currently looking to fast-track."
AEMP co-founder Benoit Garrivier, meanwhile, added: “I am very excited about joining the Chariot family.
“Teaming up with Chariot's highly experienced management will allow us to take our partnership with Total Eren to the next level. Building on our award-winning Essakane solar project, we look forward to growing our pipeline of projects to transform the energy market for mining.
“This is a fantastic opportunity to create an innovative transitional energy group focused on Africa and support our clients in their move towards green energy and reduction of their carbon footprint."
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