Aim-listed Ncondezi Energy has entered into a formal agreement to extend its shareholder loan repayment date. The extension includes the loan announced in May, which involved Ncondezi drawing down $2.2-million, taking the total repayment amount to $4.4-million.
It also includes the $350 000 loan from existing shareholders and the $232 000 loan from the company’s senior management, which were both announced in June.
The company agreed on an amendment to the repayment terms of the shareholder loan, with repayment now due on September 2, 2018.
“This provides the company with time to conclude the new partner search process, to better develop loan repayment options and to raise additional working capital by the end of September,” the company said in a statement.
All other terms of the shareholder loan remain unchanged, including the loan return multiples, which remain fixed and generate no additional cost to the company.
A large thermal coal resource, strategically located in the Tete Province of Mozambique, which is capable of supporting a long life, open pit mining and power plant operation.