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5 March 2024
Cindrigo Holdings
Limited
('Cindrigo' or the
'Company')
Updates on Croatian
Geothermal Project Licence and Funding
Cindrigo (LSE:CINH) announces that
its subsidiary Dravacel Ltd ("Dravacel") has applied for a further
six month extension to the exploration licence at its Slatina 3
geothermal project in Croatia (the "Project") which, when granted,
will extend the expiration of the licence to the end of October
2024.
The request to extend the Slatina 3
licence for a further six months (the "Licence Extension") aligns
with the regulatory framework of the Croatian Hydrocarbon Council
and is required to be able to finish the work to move to an
Exploitation Phase. The Company is confident that it has
demonstrated that sufficient work has been done on the site to
demonstrate its commitment and belief in the commercial viability
of the Project, and that the Licence Extension will be granted
shortly.
Tri Ri Asset Management ("TRAM") and
Cindrigo have agreed to postpone the drawdown of funds from TRAM
for Slatina 3 development, under the £10 million convertible loan
with TRAM (see RNS dated 20 February 2024), until the Licence
Extension is granted.
Whilst it was previously anticipated
that deep drilling would be initiated during February 2024,
Dravacel has, to accommodate the timing of the license extension
and draw down of funds, paused further drilling operations at the
Project site until the Licence Extension is confirmed. The Company
believes that once the Licence Extension is granted, and funds are
drawn down and work recommences, it will have sufficient time and
remain in a position to progress the
Project to the exploitation phase.
Commenting, Lars Guldstrand, CEO of Cindrigo
said: "We believe that the decision to pause site operations and the
drawdown of TRAM's funds until we receive confirmation of the
licence extension represents a prudent approach to managing the
Project and its funding requirements.
"We still have high confidence in the Slatina 3 project's
potential which is underpinned by compelling geothermal data
indicative of a high-quality reservoir. To date, nearly €8 million
has been invested in the Project, with approximately €3 million
allocated in 2024 alone, which illustrates our unwavering
commitment to its success.".
**ENDS**
For
more information please contact:
Cindrigo Holdings Limited
Lars Guldstrand
CEO
+44 (0) 7408 861 667
Hannam & Partners (Financial
Advisor & Corporate Broker)
Samuel Merlin, Sean
Urquhart
+44 (0) 20 7907 8500
St Brides Partners Ltd
(PR)
Paul
Dulieu
+44 (0) 20 7236 1177
Notes:
Cindrigo Group is an active clean baseload power developer engaged in the
renewable energy sector. Its current focus is on the construction
of an initial 20 MW geothermal power plant located in Croatia, but
a number of other projects are also underway, primarily in the
Pannonian Basin of Central Europe.
Cindrigo aims to have contracts in
place for geothermal power plant projects with up to 200 MW of
contracted capacity within a year, up to 450 MW within three years
and 1000 MW by 2030. The financing for each power plant
project will be primarily on a structured project finance basis
within special purpose vehicles for each project.
Cindrigo is in the process of
seeking approval by the FCA of a prospectus in respect of its
proposed application for re-admission to the standard segment of
the Official List and to trading on the Main Market of the London
Stock Exchange.
Forward-Looking Statements This
press release contains forward-looking statements that involve
risks and uncertainties. These statements are not guarantees of
future performance, and actual results may differ materially.
Investors are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date
hereof.