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Ncondezi raises £3m through open offer, share placement

Ncondezi raises £3m through open offer, share placement

Photo by Bloomberg

2nd December 2013

By: Natalie Greve

Creamer Media Contributing Editor Online

  

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JOHANNESBURG (miningweekly.com)– Aim-listed Ncondezi Energy has conditionally raised some £3-million, before expenses, by way an open offer and placement of 60.6-million ordinary shares on the basis of one new share for every two existing shares with existing and new investors.

Funds from the offer and placing would be principally used to fund development costs relating to the completion of the final form power purchase agreement between the company and power utility Electricidade de Moçambique, the completion of the codevelopment selection process and the funding of general working capital requirements.

Nonexecutive chairperson Michael Haworth said the offer had been “strongly” supported by existing and new investors and would enable the emerging Mozambican power development company to approach its flagship power project from a position of greater financial security.

“Since signing the power framework agreement with the government of Mozambique in April, the Ncondezi power project has gained significant momentum over the past seven months, culminating in the signing of the power purchase and transmission heads of terms.

“The next 6 to 12 months will be equally important as we finalise the key commercial agreements for the project, seek to partner with a codeveloper and achieve project financial close by the end of 2014,” he commented.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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