By Oliver Griffin
Ncondezi Energy shares soared Tuesday after the company said that it has signed a joint development agreement with China Machinery Engineering Corp and General Electric Co.'s (GE) Swiss business to develop its project in Mozambique.
The company said the agreement with CMEC and General Electric Switzerland Gmbh will see the development of its 300 megawatt coal-fired power project and coal mine in Tete, Mozambique.
Ncondezi said it is expected to hold a 40% interest in the project and will be responsible for 40% of the development costs to final close, based on an agreed budget.
The parties have agreed to reimburse Ncondezi's historical development costs to date, the company said.
"This is a significant milestone that should materially enhance the credibility of the project in Mozambique and with international financiers, helping to unlock key development processes," Non-Executive Chairman Michael Haworth said.
Shares at 1021 GMT were up 26% at 8.85 pence, having hit earlier highs of 9.90 pence a share.
Write to Oliver Griffin at email@example.com; @OliGGriffin