Strategic Partner Site Visits Complete

RNS Number : 4586Q

Ncondezi Energy Limited

21 October 2019

 

News Release 

Strategic Partner Site Visits Complete

21 October 2019: Ncondezi Energy Limited ("Ncondezi" or the "Company") (AIM: NCCL) is pleased to announce the successful completion of a technical due diligence site visit by its strategic partner China Machinery Engineering Corporation ("CMEC") as part of the process to prepare  the Engineering, Procurement and Construction ("EPC") and Operations and Maintenance ("O&M") contracts for the integrated Ncondezi 300MW coal fired power project and coal mine in Tete, Mozambique (the "Project").

Highlights:

·      EPC and O&M contracts are the key inputs to finalising the Project power tariff for submission to Mozambique state power utility Electricidade de Moçambique ("EDM")

·      EPC and O&M proposed contracts submission on target for Q4 2019

·      CMEC, as the main EPC and O&M contractor, sent a technical team consisting of 14 specialists from its investment, power, mine and water departments

·      Site visit included travel to the Project mine concession area to view proposed location of the key components of the power plant, mine and water infrastructure, as well as visits to nearby operating coal mines and construction supply quarries

·      Two day Q&A session between CMEC and Ncondezi technical teams, including power and mine technical consultants involved in the power plant and mine feasibility studies

Ncondezi Chief Executive Officer, Hanno Pengilly said: "Ncondezi's strategy is to deliver reliable, affordable and accessible baseload energy to the Mozambican grid at a competitive price. Completion of CMEC's site visit is an important step in the technical due diligence process to finalise the power plant and mine EPC and O&M proposed contracts. These proposed contracts will provide firm capex and opex numbers for the Project financial model and electricity tariff proposal, required by EDM to demonstrate the proposed Project tariff is both credible and attractive.

The Company is pleased to report that the site visit and technical Q&A sessions were successful. The Company's internal due diligence team is now focused on addressing outstanding questions to finalise the EPC and O&M process in the target Q4 2019 timeframe."

Enquiries

For further information please visit www.ncondezienergy.com or contact:

Ncondezi Energy:	Hanno Pengilly	[phone]
Liberum Capital Limited: NOMAD & Joint Broker	Andrew Godber, Edward Thomas, Kane Collings	[phone]
Novum Securities Limited Joint Broker	Colin Rowbury	[phone]
Pimlico Advisory Ltd Investor Relations	Elizabeth Johnson	[phone]

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 [phone].

 

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