- Africa-focused energy company Ncondezi Energy said it had signed a term sheet setting out the basis of an investment in its 300 megawatt power project and coal mine in Tete, Mozambique with China Machinery Engineering Corporation.

The 'shareholders agreement term sheet' set out the agreed basis for a long-form shareholders agreement, which would be finalised between the parties once investment conditions are met.

Key principles included China Machinery Engineering subscribing for 60% equity in the project, with Ncondezi Energy holding the remaining 40%.

The company's would fund development costs up to financial close on a 60:40 basis.

Chief executive Hanno Pengilly said the signing of the term sheet marked 'another exciting milestone' for the company.

'The agreed investment conditions provide a roadmap for CMEC's investment into the project, and outline Ncondezi's key delivearbles over the coming months.'

'Following today's announcement, we believe the project is the only baseload coal power project in Mozambique that has announced such progress with strategic partners, reconfirming both the project's credibility and position as the most advanced project of its type in the country.'

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