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Delegation visit to Mozambique powers up Ncondezi Energy's shares

Published: 12:05 07 Jul 2016 BST

Coal-fired power project
The Ncondezi project is a transformational project for Mozambique

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Shares in Ncondezi Energy Limited (LON:NCCL) enjoyed a power surge on Thursday morning as the company updated on its 300 megawatt coal-fired power project.

The stock sparked up 0.25p, or 6.9%, to 3.88p after a delegation from the Chinese energy company Shanghai Electric Power (SEP) together with Ncondezi Energy arrived in Maputo for meetings with Mozambican government officials to discuss the project, which is to be built in the Tete Province of Mozambique.

The objective of the visit was to update local officials on the progress of the Ncondezi project as well as the future plans and timing to develop, fund, build and run the plant.

A ceremony was held to sign the shareholders agreement term sheet between SEP and Ncondezi, which Ncondezi Energy said represents an important step towards completing the joint development agreement (JDA) for the project.

"The preparatory work is in the advanced stages following significant collaboration between the SEP and Ncondezi technical teams.

"The investment in the Ncondezi Project meets SEP's strategy to capitalise on overseas opportunities using its technical and financial competence for the creation of another SEP by 2020,” said SEP’s chairman Wang Yundan.

Ncondezi’s chairman, Michael Howarth, said SEP is the right partner to facilitate the development of the Ncondezi Project and brings significant development and operational experience to the project.

“SEP and Ncondezi are aligned in their target to complete the development phase of the project and reach financial close.

"I would like to thank the Mozambican government and EDM [Electricite de Mozambique] for their continued support for this project and we look forward to a continued strong relationship as we move forward for the benefit of all stakeholders," Howarth said.

SP Angel said the Maputo meetings and the signing of the term sheet seemed to mark a significant milestone in the development of the project.

"We look forward to a growing momentum in coming months," the broker said.

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