Ncondezi Energy Limited Project and Financing Update (9506O)
August 25 2017 - 2:00AM
UK Regulatory
TIDMNCCL
RNS Number : 9506O
Ncondezi Energy Limited
25 August 2017
News Release
Project and Financing Update
25 August 2017: Ncondezi Energy Limited ("Ncondezi" or the
"Company") (AIM: NCCL) is pleased to announce a project and
financing update for the planned 300MW Ncondezi coal fired power
project ("Ncondezi Project") to be built in the Tete Province of
Mozambique.
Key Highlights
-- Second phase of new partner process nearing completion
-- Binding offer process to start in September 2017 with preferred potential partners
-- New partner process on track for completion in Q4 2017
-- Shareholder loan repayment date extension for 12 months
agreed in principle, subject to documentation phase
-- Next update planned for late September 2017
Ncondezi Non-Executive Chairman, Michael Haworth, commented:
"The Ncondezi Project is one of the most advanced development stage
coal fired power projects in the region and remains an attractive
opportunity to international developers and operators. Today's
announcement highlights the progress achieved in identifying a new
strategic partner to take on a leadership role in further
developing the project. The Company has begun receiving the
non-binding offers from potential partners, which we will now look
to develop into binding offers through a competitive negotiation
process in early Q4 2017. We are very pleased with the quality of
the partners who have submitted offers to date, and believe the
power project will be well positioned to finalise development,
financing and initiate construction once a binding offer has been
agreed. Finally, the Company has received in principle support from
loan holders to extend the loan for a further 12 months and is now
finalising documentation which is expected to be completed shortly.
This support for an extension from loan holders reflects the
progress that has been made since June 2017, and will provide more
time to explore refinancing opportunities in parallel with further
project de-risking."
Partner Search Process
As per previous guidance, the new partner process entered the
second phase during the month of August 2017 with the focus on
receiving non-binding offers from potential partners. This phase
involved the opening up of a detailed dataroom, management
presentations, and Q&A sessions with potential partners. The
Company has begun receiving non-binding offers and expects to have
all offers in before the end of the month.
The next phase will begin in September with the Company
narrowing the process down to a few preferred parties who will be
further supported by the Company to complete their detailed due
diligence for submission of binding offers and Joint Development
Agreement finalisation. Binding offers are targeted for early Q4
2017, and the Company expects to be in a position to accept its
preferred offer before year end.
The Company's objective is to identify a new partner capable of
providing a leadership role in the financing, construction and
operation of the power plant, with a credible track record in both
the global and African power sectors. Although limited information
can be shared at this time due to the competitive nature of the
process, the Company has been very encouraged by what has been
received to date.
Shareholder Loan Extension
Following on from the encouraging results of the new partner
process, the Company has received in principle support from all
loan holders to amend the repayment date of the Shareholder Loan to
2 September 2018, an extension of 12 months. This will provide the
Company with time to conclude the new partner process, better
develop loan repayment options and raise additional working capital
by the end of September 2017.
The Company expects all other terms of the Shareholder Loan to
remain unchanged, including the loan returns. The Shareholder Loan
includes the Shareholder Loan referred to in the announcement of 11
May 2017 and the New Loan and Employee Shareholder Loan announced
on 23 June 2017.
Whilst discussions are at an advanced stage for the Shareholder
Loan extension and the Partner Search Process remains on track,
there can be no certainty that either will be finalised.
Further announcements will be made as appropriate.
Enquiries
For further information please visit www.ncondezienergy.com or
contact:
+44 (0) 739
Ncondezi Energy: Hanno Pengilly 261 6850
Liberum Capital
Limited: Neil Elliot / Richard +44 (0) 20 3100
NOMAD & Broker Crawley 2000
Note:
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation ("MAR"). Upon the publication of this
announcement via Regulatory Information Service ("RIS"), this
inside information is now considered to be in the public domain. If
you have any queries on this, then please contact Hanno Pengilly,
Chief Development Officer of the Company (responsible for arranging
release of this announcement) on +44 (0) 739 261 6850.
Ncondezi owns 100% of the Ncondezi Project which is
strategically located in the power generating hub of the country,
the Tete Province in northern Mozambique. The Company is developing
an integrated thermal coal mine and power plant in phases of 300MW
up to 1,800MW. The first 300MW phase is targeting domestic
consumption in Mozambique using reinforced existing transmission
capacity to meet current demand.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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