Ncondezi Energy Limited Project Update (9517M)
03 May 2018 - 4:00PM
UK Regulatory
TIDMNCCL
RNS Number : 9517M
Ncondezi Energy Limited
03 May 2018
News Release
Project Update
03 May 2018: Following the announcement on 25 April 2018,
Ncondezi Energy Limited ("Ncondezi" or the "Company") (AIM: NCCL)
is pleased to provide an update on its process to conclude a
binding Joint Development Agreement ("JDA") for the Company's
integrated 300MW power and coal mine project in Tete Mozambique
(the "Project").
Key Highlights:
-- Integrated financial model ("FM") updated with proposals for
engineering, procurement, and construction ("EPC") and operations
and maintenance ("O&M") contracts.
-- The Project consists of two 150MW coal fired power plants,
open pit coal mine and 2km conveyor connecting to the power plant
together with common infrastructure such as water dams, dumps,
electrical reticulation and villages and a 92km transmission line
connecting into the Mozambican northern power grid.
-- Positive initial results, which continue to indicate the
viability of the Project and confirm economics.
-- Initial review indicates that there is the potential to
deliver a more competitive power tariff to Electricity de
Mozambique ("EDM") and the Ministry of Mineral Resources and Energy
("MIREME") for approval.
-- The FM is currently under review by potential partners.
-- Target completion of FM review in May 2018.
-- Submission of FM to EDM and MIREME targeted for June 2018 to
seek in principle support for a new power tariff envelope, this is
the main priority for the Company.
All other timetable deliverables remain as per previous
announcements.
There is no certainty that the transactions contemplated by this
announcement will occur.
Ncondezi's Non-Executive Chairman, Michael Haworth, commented:
"Although still at an early stage, the preliminary results from the
updated EPC and O&M information in the FM are positive and
allude to the potential for delivery of a more competitive tariff
to the Mozambican Government and EDM for approval. This also
represents a significant milestone in the Project development
process as the Company did not reach this stage of development with
its previous potential partner. The next phase of the partner
process is to finalise the FM by the end of May 2018, confirming a
new tariff envelope which can be submitted to MIREME and EDM during
June 2018. Should support be received for the new tariff envelope,
the Company believes it will be well positioned to close out the
JDA process and progress the Project to Financial Close."
Enquiries
For further information please visit www.ncondezienergy.com or
contact:
Ncondezi Energy: Hanno Pengilly +27 (0) 71 362 3566
Liberum Capital Limited: +44 (0) 20 3100
NOMAD & Joint Broker Neil Elliot / Richard Crawley 2000
Novum Securities
Limited: +44 (0) 20 7399
Joint Broker Colin Rowbury 9427
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 +27 (0) 71 362 3566.
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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