JOHANNESBURG (miningweekly.com) – Aim-listed Ncondezi Energy has raised £950 000, before expenses, through a conditional placing of 15.2-million ordinary shares at a price of 6.25p apiece.
The company will use the funds to strengthen its balance sheet as it moves towards the conclusion of a joint development agreement (JDA) for its 300 MW power plant and coal mine project, in Tete, Mozambique.
“Funds raised from the placing put the company in a position of strength to finalise JDA discussions with its potential partners,” Ncondezi nonexecutive chairperson Michael Haworth commented on Friday.
The proceeds of the placing, together with existing cash resources of $280 000, will cover nonproject corporate costs until the end of June 2019, subject to a shareholder loan being extended or restructured.
The shareholder loan matures on September 2, with the company currently evaluating options to extend or restructure the loan.