Ncondezi Energy Limited Project Update (7964V)
26 July 2018 - 4:01PM
UK Regulatory
TIDMNCCL
RNS Number : 7964V
Ncondezi Energy Limited
26 July 2018
News Release
Project Update
26 July 2018: Following the announcement on 29 June 2018,
Ncondezi Energy Limited ("Ncondezi" or the "Company") (AIM: NCCL)
provides the following 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:
-- Updated tariff proposal (the "Proposal") formally submitted
to Mozambican state power utility Electricity de Mozambique ("EDM")
and the Ministry of Mineral Resources and Energy ("MIREME").
-- EDM has requested a detailed workshop session (the
"Workshop") with the Company and its potential strategic partners
to work through the updated tariff proposal and agree critical next
steps following receipt of the Proposal and initial meetings held
in July 2018.
-- Workshop timing is planned for early August 2018.
-- The submission forms part of the process to receive formal
support from EDM and MIREME to progress the Project, and is a key
milestone in finalising the JDA.
-- Ncondezi now targeting JDA completion within 3 months of
receipt of necessary support from EDM and MIREME with more clarity
on timing expected post the Workshop in August 2018.
-- Updated timetable for key milestones including the power
tariff sign off, Power Purchase Agreement ("PPA") negotiations,
Financial Close ("FC") and the date of first power on the grid
expected to be agreed during the Workshop.
-- Further updates will be provided after the Workshop has been concluded.
-- EDM has released 10 year strategy paper which includes
provision for 300MW of coal fired power from Tete Mozambique in
2023, which is within the Project's current delivery timeline.
Ncondezi's Non-Executive Chairman, Michael Haworth, commented:
"Whilst it is disappointing that the JDA will not be finalised by
the end of July, the Company is encouraged by the response it has
received to date from EDM following delivery of the Proposal, and
believes that this is as a result of a competitive and attractive
package that the Company and its potential strategic partners have
put together. EDM has indicated the need for a 300MW coal fired
project on the grid by 2023 in its 2018 10 year strategy paper to
fill a critical power shortfall and energy mix need in the north of
the country. The Company believes that the Project is well
positioned to deliver on this as one of the most advanced power
development projects in Mozambique together with world class
potential strategic partners. The next critical step is to
successfully complete the Workshop in August 2018, receive the
necessary support from EDM and MIREME to finalise the JDA and agree
the updated schedule for the key milestones leading up to FC and
commissioning. Further updates on the timetable for delivery of the
JDA and other key work streams are expected to be provided after
the Workshop.
There is no certainty that the transactions contemplated by this
announcement will occur.
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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
UPDLLFVDDSIEFIT
(END) Dow Jones Newswires
July 26, 2018 02:01 ET (06:01 GMT)
Solgenics (LSE:SGN)
Historical Stock Chart
From Apr 2024 to May 2024
Solgenics (LSE:SGN)
Historical Stock Chart
From May 2023 to May 2024