Operational Highlights:

Ncondezi Power Project

• US$21.0 million historical costs relating to the Ncondezi Project agreed “in principle” with China Machinery Engineering Corporation (“CMEC”)
• Master Services Agreement (“MSA”) signed with Synergy Consulting (“Synergy”) to provide financial and transaction advisory services to the Group for the integrated Ncondezi 300MW coal fired power project and coal mine in Tete, Mozambique (the “Ncondezi Project” or the “Project”)
• Approval received to conduct further work on an optimised transmission integration solution, which is expected to further reduce costs

Commercial & Industrial Solar and Battery Projects

• Remobilisation of construction in March 2021 at 400kWp solar PV plus 912kWh battery storage Commercial & Industrial (“C&I”) project located in Mozambique (the “C&I Maiden Project”)
• Ncondezi Green Power (“NGP”) and Captive Power Limited (“CPL”) signed a binding Relationship Agreement, which supersedes the Relationship Agreement with GridX announced on 6 May 2020 under which NGP has the right (but not the obligation) to fund a pipeline of C&I solar and battery storage projects in Mozambique
• All rights and obligations under the GridX Relationship Agreement were suspended and GridX agreed to novate to CPL all commercial agreements in relation to the C&I Maiden Project and to release to CPL any rights in relation to 5 of the existing 6 projects in the pipeline
• Term sheet with binding exclusivity signed between NGP and Nesa Capital (Pty) Ltd and Nesa Engineering (Pty) Ltd (collectively “NESA”) detailing the proposed formation of a new joint venture company (“JVCo”)
• Binding agreement signed between NESA, Nesa Investment Holdings (“NIH”) and NGP granting NESA and NGP exclusive rights to negotiate terms on which they would acquire, through the proposed JVCo, a minimum 51% interest in a 15.5MWp solar PV plus 0.2MWh battery storage C&I portfolio across 66 sites in South Africa (the “NIH Portfolio”) with a subsequent option to acquire up to 100% within a 5 year period

Financial and Corporate Highlights:

• US$500,000 bridge loan (“Bridge Loan”) between the Company’s wholly owned renewables subsidiary, NGP and certain Company Directors to finance the construction of C&I Maiden Project, the full amount has been drawn down as of 28 September 2021
• CEO, Hanno Pengilly subscribed for 1,243,646 at 3p per Ordinary Share in lieu of deferred salary and 1,996,755 at 4.5p per Ordinary Share in lieu of contractual bonuses due on the achievement of various milestones in 2019 and 2020
• 754,860 Ordinary Shares were issued at 3p to certain employees, contractors and consultants in relation to outstanding deferred salaries and fees accruing between April 2020 and November 2020
• 357,142 Ordinary Shares were issued at 4.2p in lieu of outstanding advisor fees
• Cash at bank of US$0.4 million (as at 30 June 2021). US$0.9 million as at 28 September 2021

Post period end events:

• Engineering, Procurement and Construction (“EPC”) power plant contract for the integrated Ncondezi 300MW coal fired power project and coal mine in Tete, Mozambique (the “Project”) signed with CMEC
• The Company terminated its Employees Benefit Trusts 1 & 2, the 2,869,840 Ordinary Shares of no par value that remained in the EBT were transferred to the Company to be held in treasury by the Company
• Successful fund raising of £600,000 in August 2021 to finance general working capital and development expenditure at the 300MW Ncondezi Project. As part of the placing 18,419,930 placing warrants were issued, a further 3,580,070 placing warrants and 2,000,000 broker warrants are to be issued conditional upon the approval of certain Shareholder resolutions at the Company’s AGM in 2021

News in full