Ncondezi suspends talks with Shanghai Electric Power

Shares in Ncondezi Energy shed almost a fifth of their value after it suspended exclusive discussions with Shanghai Electric Power Co Ltd (SEP) regarding its Joint Development Agreement (JDA).

It said that the exclusivity arrangements with SEP had lapsed, and its decision followed more than three years of negotiations.

"The board of Ncondezi believes that the ongoing delays in SEP funding the (Ncondezi power) project project is unsustainable," it said.

The company would now engage with additional strategic partners that had expressed an unsolicited interest in developing the project alongside Ncondezi.

"A new strategic partner process has commenced and initial feedback is expected before the end of August."

Ncondezi also said that it received indications of interest for an additional $350,000 shareholder loan, which was in the process of being finalised and documented. This would fund the company until 2 September.

This proposed financing was committed by chairman Michael Haworth ($200,000) and other existing long term shareholders ($150,000).

At 10:59 BST, shares in Ncondezi were down 17.65% to 1.75p each.