Ncondezi Energy Limited Project Update (5693L)
July 20 2017 - 1:00AM
UK Regulatory
TIDMNCCL
RNS Number : 5693L
Ncondezi Energy Limited
20 July 2017
News Release
Project Update
20 July 2017: Ncondezi Energy Limited ("Ncondezi" or the
"Company") (AIM: NCCL) is pleased to announce a project update on
the new partner search and shareholder loans.
Key Highlights
-- Positive feedback on new partner process with Letters of
Interest received from several strategic parties
-- Second phase of process initiated with select strategic parties
-- New partner process completion targeted for Q4 2017, with the
next update planned for August 2017
Partner Search Process
In June 2017, Ncondezi launched a new strategic partner process
to identify a potential partner to develop the 300MW thermal coal
power project (the "Project") jointly with the Company. Although
the process is still at an early stage, the Company has been
encouraged by the quality of the participating parties, which
represent a combination of leading international power companies
and regional power developers.
During July 2017, Ncondezi received Letters of Interest from
several potential strategic parties which has allowed the Company
to narrow the process down to a smaller select group for the second
phase.
For the second phase of the process, potential partners will be
expected to complete their necessary due diligence, Q&A and
deal structuring work to submit non-binding offers to the Company.
Based on the non-binding offers received from the parties, the
Company will then narrow the process to a few preferred parties who
will be further supported by the Company to complete their detailed
due diligence for submission of the binding offers.
The process is currently targeting submission of binding offers
before the end of Q3 2017 with transaction close during Q4
2017.
Further updates for shareholder are planned for August 2017.
Whilst the initial feedback in relation to the new strategic
partner process is encouraging, there can be no certainty that the
new strategic partner search process will be successful.
Shareholder Loans
Ncondezi plans to initiate discussions with Shareholder Loan
holders to extend the maturity date of the Shareholder Loans, which
currently reach maturity on 2 September 2017. The extension is
being requested to provide the Company with sufficient time to
close out the strategic partner process and further explore loan
repayment options, however, there can be no certainty that an
extension to the repayment date will be agreed.
The Company expects more attractive repayment options to become
available once the new partner process has been completed.
Assuming that the Shareholder Loans' repayment date can be
extended, the Company will have sufficient funding in place to
cover its working capital commitments until the end of September
2017.
Enquiries
For further information please visit www.ncondezienergy.com or
contact:
+44 79 0161
Ncondezi Energy: Hanno Pengilly 6098
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 79 0161 6098.
Ncondezi Energy 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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