Aim-listed Ncondezi Energy has received “in principle” support from all loan holders to enter into a loan restructuring for its existing $5.1-million loan and on the process to conclude a binding joint development agreement (JDA) for the company’s integrated 300 MW power and coal mine project in Tete, Mozambique.
Company chairperson Michael Haworth and nonexecutive directors Estevao Pale and Chris Schutte signed irrevocable commitments on August 29 to enter into the restructuring on terms agreed by the other lenders.
Restructuring documentation to be finalised is expected to be received by the end of September.
While there is currently no certainty regarding whether the restructuring will indeed occur, Ncondezi on Thursday said all lenders have indicated that they will not call in the loan while the restructuring is being finalised.
Amendments to the loan, which matures in September, include a 12-month extension and a 12% interest rate.
It also includes the ability for lenders to swap debt for equity in part, or in full, at a conversion price of 10p a share, representing a premium of 33% for the closing share price on August 9, Mining Weekly Online reported earlier this month.
Additionally, the company and its potential strategic partners have held meetings, as planned, with the Mozambican State power utility Electricity de Mozambique (EDM) and the Ministry of Mineral Resources and Energy (Mireme).
In the meetings, both EDM and Mireme emphasised the need to align the project development timeline with the current regional market environment and planning, as well as the need for a support package to progress the project and JDA, Ncondezi said.
These are currently under negotiation, the company added.