Ncondezi receives restructuring support from lenders

Ncondezi Energy has received "in principle" support from its lenders to enter a loan restructuring proposal, concluding a binding joint development agreement for the AIM-listed firm's integrated 300-megawatt power and coal mine project in Mozambique.

Ncondezi's lenders confirmed on Thursday that they would not call in their loans whilst the firm's restructuring was being finalised, something it expected to wrap-up by the end of September.

The Africa-focussed energy firm revealed that it had held meetings in Maputo as with Mozambican state power utility Electricity de Mozambique, the Ministry of Mineral Resources and Energy and its potential strategic partners where it emphasised the need to align the project development timeline with the regional market. Ncondezi said it was still in negotiation with the government bodies.

Ncondezi told investors it would make a further announcement once definitive documentation covering the restructuring agreement had been entered into.

As of 1610 BST, Ncondezi shares had slumped 5.71% to 6.60p.