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Ncondezi Energy Ltd (LON:NCCL) has raised £650,000 though a conditional share placing to support working capital and cover corporate costs until the end of 2020.

It is issuing 21.6mln new shares priced at 3p each and investors will also receive 1 share warrant per share, exercisable at 6p per share.

“The placing provides the company with sufficient general working capital until the end of Q4 2020 (subject to the shareholder loan),” Hanno Pengilly, Ncondezi chief executive said in a statement.

READ: Ncondezi worth three times current valuation

“This puts the company in a strong financial position to execute on its core work program for the rest of 2020, namely finalisation of the project power tariff, shareholders agreement and power purchase agreement, as well as progressing its strategy in the high growth commercial and industrial solar and battery storage sector,” the chief executive added.

The company also updated investors on the 300 MegaWatt Ncondezi thermal power project and coal mine, sharing some new details that confirm the project’s economics with regionally competitive IRR (based in US$).

“Following the successful submission of the updated Project power tariff work has progressed on all fronts despite the current travel restrictions,” Pengilly said.

“Our partners in China are advancing work on the historical cost audit, the initial draft of the SHA term sheet has been received and is under review and the first draft of the EPC contract is well underway. These are all important milestones which highlight continued progress and support for the project.”

He added: “The Ncondezi Project is one of the most advanced power projects currently underway in Mozambique with the ability to provide access to reliable and affordable power, helping to close the regional infrastructure gap and serving as a catalyst for economic development in the region.”