Ncondezi Energy Limited Ncondezi signs NBO with GE and CMEC (0220W)
09 November 2017 - 6:09PM
UK Regulatory
TIDMNCCL
RNS Number : 0220W
Ncondezi Energy Limited
09 November 2017
News Release
Ncondezi Signs Non-Binding Offer with General Electric and China
Machinery Engineering Corporation
9 November 2017: Ncondezi Energy Limited ("Ncondezi" or the
"Company") (AIM: NCCL) is pleased to announce that it has signed a
Non-Binding Offer ("NBO") with China Machinery Engineering
Corporation ("CMEC") and General Electric South Africa (PTY)
Limited ("GE") at a formal signing ceremony in Beijing, China.
Signing of the NBO follows the previous announcement on 20
October 2017 that the parties had agreed in principle the terms of
the NBO. As previously announced, the NBO provides for the entry
into exclusive negotiations to develop, construct and operate the
integrated Ncondezi 300MW coal fired power project (the "Power
Project") and open pit coal mine in Tete, Mozambique (the "Mine
Project") (together the "Integrated Project").
CMEC and GE were selected as preferred partners to develop the
Integrated Project due to their leading experience in the energy
sector and specific experience developing projects in
Mozambique.
Under the NBO, NEL has now granted exclusivity to CMEC and GE
until 30 April 2018 to conclude a binding Joint Development
Agreement ("JDA") and tender on the EPC and O&M contracts for
the Integrated Project, subject to the NBO not being terminated by
CMEC and GE following their due diligence or by NEL if CMEC and GE
fail to submit binding offers for EPC and O&M in accordance
with agreed timelines.
The key terms of the NBO remain unchanged from the previous
announcement.
As previously announced, the NBO is subject to a number of
conditions, which remain unchanged. They include CMEC and GE
successfully completing their due diligence and agreeing the
JDA.
During the visit to Beijing, the parties also updated the work
program and timetable to complete the project due diligence and if
successful to conclude the JDA, and the appropriate responsibility
and resource allocations were agreed to with a view to ensuring key
deliverables will be met within the target timeframes.
The Company will make a further update on the JDA to
shareholders as appropriate.
There is no certainty that the transactions contemplated by this
announcement will occur.
Enquiries
For further information please visit www.ncondezienergy.com or
contact:
+27 (0) 71 362
Ncondezi Energy: Hanno Pengilly 3566
Liberum Capital
Limited:
NOMAD & Joint Neil Elliot / Richard +44 (0) 20 3100
Broker Crawley 2000
Novum Securities
Limited +44 (0) 20 7399
Joint Broker Colin Rowbury 9427
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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