Ncondezi Energy suspends talks with Shanghai Electric PowerStaff Writer | May 26, 2017
Shares in Ncondezi Energy shed almost a fifth of their value after it suspended exclusive discussions with Shanghai Electric Power (SEP) regarding its joint development agreement (JDA).
Energy The exclusivity arrangements with SEP had lapsed
"The board of Ncondezi believes that the ongoing delays in SEP funding the (Ncondezi power) project project is unsustainable," it said.
The company would now engage with additional strategic partners that had expressed an unsolicited interest in developing the project alongside Ncondezi.
"A new strategic partner process has commenced and initial feedback is expected before the end of August."
Ncondezi also said that it received indications of interest for an additional $350,000 shareholder loan, which was in the process of being finalised and documented. This would fund the company until 2 September.
This proposed financing was committed by chairman Michael Haworth ($200,000) and other existing long term shareholders ($150,000). ■