Ncondezi Energy Limited Project Update - Early Works Instructed (1436F)
November 12 2020 - 5:33AM
UK Regulatory
TIDMNCCL
RNS Number : 1436F
Ncondezi Energy Limited
12 November 2020
News Release
Project Update: Early Works Instructed
12 November 2020: Ncondezi Energy Limited ("Ncondezi" or the
"Company") (AIM: NCCL) is pleased to announce that contractors have
been instructed to progress specified accelerated development works
at the Ncondezi 300MW coal-fired power project and coal mine. In
conjunction with this the Company has agreed, with its lead
Strategic Partner, an early development works budget which is
awaiting signatures.
Subject to the relevant parties signatures being received it is
expected that this funding will be provided by the Strategic
Partner advancing sums to the subsidiary under a supplemental
agreement to the Joint Development Agreement signed in July 2019
and that the Company will pledge shares in the subsidiary as
security for the repayment of such sums advanced.
In addition, the Company's third party Power Market Outlook
study is in advanced draft format currently under internal review,
and on track to submit this month following updates on national
generation planning from the Mozambican Government in October 2020.
The Company's updated Feasibility Study is expected to be submitted
at the same time.
Ncondezi Chief Executive Officer, Hanno Pengilly said: "As part
of our financing strategy to advance the Ncondezi Project we have
been in discussions around our financing options and this is a key
step forward towards those goals and to ensure that we can continue
to advance the Project while the tariff negotiations are underway.
Contractors have now been instructed on the early works and we
expect to be able to update the market further in due course."
Enquiries
For further information please visit www.ncondezienergy.com or
contact:
Ncondezi Energy Hanno Pengilly +27 (0) 71 362 3566
Liberum Capital Limited Scott Mathieson, Edward Thomas, +44 (0) 20 3100
NOMAD & Joint Broker Kane Collings 2000
Novum Securities
Limited +44 (0) 20 7399
Joint Broker Colin Rowbury 9427
Pimlico Advisory
Ltd +44 (0) 777 56 55
Investor Relations Elizabeth Johnson 927
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 Executive Officer of the Company (responsible for arranging
release of this announcement) on +27 (0) 71 362 3566.
About Ncondezi Energy
Ncondezi is an African power development company with an
advanced staged, integrated 300MW thermal coal power plant and mine
project located in the Tete Province, Northern Mozambique.
The Company is focused on providing reliable, affordable and
accessible baseload energy to Mozambique and secure against the
effects of water drought and intermittency of new renewables. This
project supports Mozambique's energy strategy of universal
electricity access by 2030. According to the World Bank, only 30%
of the Mozambican population had access to energy in 2017. The
Ncondezi Project would provide 300MW of reliable and available
power helping to close the infrastructure gap of the region and
serving as a catalyst for economic development.
The power plant will be designed to be equipped with
state-of-the-art emissions controls technologies that will reduce
local air pollutants, minimizing the plant's impact on the
environment and ensuring its compliance with the most stringent
emission standards
In 2019, the Company entered into the Commercial and Industrial
("C&I") renewable and battery storage sector and in October
2019 announced its first investment in an off grid solar battery
project. The Company has also secured the right to fund a US$5.5m
C&I project development pipeline in Mozambique through a
Relationship Agreement with a C&I developer. The move into the
C&I solar and battery storage sector offers a significant
opportunity for the Company to complement the existing large-scale
baseload power project and access near-term low-risk annuity income
streams which have significant growth potential.
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