Ncondezi signs non-binding offer with CMEC and GE
Updated : 15:06
Ncondezi Energy announced on Thursday that it has signed a non-binding offer with China Machinery Engineering Corporation and General Electric South Africa at a formal signing ceremony in Beijing, China.
The AIM-traded company said the signing of the offer followed its announcement on 20 October that the parties had agreed in principle to its terms.
As it said then, the offer provides for the entry into exclusive negotiations to develop, construct and operate the integrated Ncondezi 300MW coal-fired power project and open-pit coal mine in Tete, Mozambique.
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, Ncondezi said in its statement.
Under the offer, Ncondezi has now granted exclusivity to CMEC and GE until 30 April next year to conclude a binding joint development agreement and tender on the EPC and O&M contracts for the integrated project, subject to the offer not being terminated by CMEC and GE following their due diligence or by Ncondezi if CMEC and GE fail to submit binding offers in accordance with agreed timelines.
“The key terms of the non-binding offer remain unchanged from the previous announcement,” Ncondezi’s board confirmed.
“As previously announced, the non-binding offer 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.
The appropriate responsibility and resource allocations were also agreed to, with a view to ensuring key deliverables would 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,” Ncondezi’s board cautioned.