Ncondezi very encouraged by offers from potential partners for Mozambique plant
Ncondezi Energy said it was on track to find a new partner to develop its namesake 300MW coal fired power project in Mozambique and that its directors had agreed to defer repayment of their loans for 12 months.
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The second phase of the partner process was expected to complete by the end of August, once all the non-binding offers had been received, and the entire process before year-end.
"Although limited information can be shared at this time due to the competitive nature of the process, the Company has been very encouraged by what has been received to date," the company said in a statement.
Furthermore, on the heels of the "encouraging" results of the new partner process, all of Ncondezi's loan holders had agreed in principle to extend the repayment date of the loan from its shareholders by 12 months, to September 2018.
According to the company, that would give management time to conclude the new partner process, develop better loan repayment options and raise more working capital by the end of September 2017.
Chairman Michael Haworth said: "The company has begun receiving the non-binding offers from potential partners, which we will now look to develop into binding offers through a competitive negotiation process in early Q4 2017. We are very pleased with the quality of the partners who have submitted offers to date, and believe the power project will be well positioned to finalise development, financing and initiate construction."
Shares were up 3.23% to 4.00 by 10:05 BST.