JOHANNESBURG (miningweekly.com) – Aim-listed Ncondezi Energy has raised £750 000, before expenses, through an oversubscribed placing of 15-million ordinary shares at a price of 5p a share.
The company will use the funds raised by the placing to cover nonproject corporate costs until the end of August 2018, before the maturity of the shareholder loan, as well as to secure the company's position as it finalises the exclusivity arrangement with its proposed partner.
Ncondezi is seeking a partner to assist with the financing, construction and operation of its proposed 300 MW Ncondezi coal-fired power project, in Tete, Mozambique.
"Funds raised from the placing safeguard the company's immediate financing needs to complete the new partner process and enter into binding negotiations, and ensure that the company is adequately capitalised until the end of August 2018," chairperson Michael Haworth said in a statement on Wednesday.
Ncondezi has also agreed to issue 1.5-million warrants over ordinary shares to a nominee of Novum Securities, which will become joint company broker.
Each warrant entitles the holder to subscribe for one ordinary share at an exercise price of 5p a share.