SGN Solgenics Limited

TIDMSGN

RNS Number : 9308T

Solgenics Limited

23 March 2023

News Release

Offtake Discussion Update

23 March 2023: Solgenics Limited (the "Company") is pleased to announce an update on offtake discussions for their flagship 300MW solar PV plus Battery Energy Storage System ("BESS") renewable energy project in Tete Province, Mozambique (the "Tete Solar Project" or the "Project").

Highlights

-- Multiple NDAs signed with potential Project power offtakers (the "Offtakers") for first phase 100MW plant

-- Updated Project development programme to deliver a Bankable Feasibility Study ("BFS") has been finalised based on Offtaker discussions and requirements following presentation of the Project Feasibility Study ("FS")

   --      BFS includes the completion of key Project work streams, including: 

o Market sounding on power tariff key assumptions (capex, opex and financing costs)

o Offtaker power tariff approval

o Offtaker signature of Power Purchase Agreement ("PPA")

o Completion and Government approval of Project Environmental and Social Impact Assessments Studies ("ESIA")

-- BFS has a budgeted cost of up to US$1.5m which will need to be secured before any work streams can be launched

   --      BFS funding strategy launched with a focus on non dilutive structure 

o Targeting Project level development loans

o Potential funders include Development Funding Institutions ("DFI's") and Independent Power Producers ("IPP's")

o Multiple NDAs signed for potential funding

o Targeting selection of preferred funding partner in Q2 2023

   --      BFS is expected to take 9 to 12 months to complete once funding is in place 

-- Latest investor presentation for the Tete Solar Project is available on the Company's website www.solgenics.com

Solgenics Chief Executive Officer, Hanno Pengilly said: "Over the last 9 months, the company has made significant progress in demonstrating a technically and economically attractive project to both potential offtakers and development funders.

Since completion of the FS in February 2023, discussions with Offtakers have been positive with an emphasis on the Company upgrading the results of the FS to BFS so offtake (PPA) negotiations can be finalised. The BFS is expected to increase confidence levels around the power tariff inputs assumptions, which is important to both project financiers and Offtakers, particularly given that the Project is targeting a long term 25 year PPA.

The BFS scope and budget have been updated based on Offtaker engagement and is expected to take 9 to 12 months once funding has been secured. To complete the BFS, a development budget of up to US$1.5m has been created and includes latest quotes from 3rd party consultants and advisors.

The BFS will have two critical path works streams run in parallel, being the execution of a PPA with a preferred Offtaker and the completion and approval of the ESIA. The PPA process is expected to be delivered over three phases, the first being finalisation of the Project tariff, followed by approval of the Offtaker tariff and finally, signing of the PPA.

Solgenics has launched a development funding process for the BFS and has received multiple expressions of interest from potential funders. Discussions have been entered into under NDA to identify a preferred funding solution with target selection in Q2 2023. The Board's aim is to secure project level funding, removing dilution risk for existing shareholders while progressing the various workstreams required which will significantly de-risk the Project.

The Company has entered an exciting phase of development with a material opportunity to unlock value over a 9 to 12 month period, reflected in the positive engagement with potential Offtakers and Funders.

We look forward to providing further updates in the near future. "

Enquiries

For further information please visit www.solgenics.com or contact:

 
 Solgenics:                    Hanno Pengilly                     +27 (0) 71 362 3566 
 
   Liberum Capital Limited:    Scott Mathieson, Edward Thomas,    +44 (0) 20 3100 
   NOMAD & Joint Broker         Kane Collings                      2000 
 Novum Securities 
  Limited                                                         +44 (0) 20 7399 
  Joint Broker                 Colin Rowbury                       9427 
 
   Pimlico Advisory 
   Ltd                                                            +44 (0) 777 56 55 
   Investor Relations          Elizabeth Johnson                   927 
 

About Solgenics

Solgenics is an African renewable energy development company focused on the development of a 300MW solar PV plus BESS renewable energy in the Tete Province in northern Mozambique (the "Tete Solar Project").

It is the intention that the Tete Solar Project will connect to the Mozambique grid with target power offtakers in Mozambique and the Southern African Power Pool ("SAPP").

The Tete Solar Project takes full advantage of Mozambique's leading sustainable energy resources and is fully aligned with Government's objective to become a champion for energy transition impacting all Southern Africa.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

MSCNKBBQKBKBNNB

(END) Dow Jones Newswires

March 23, 2023 03:00 ET (07:00 GMT)

Solgenics (LSE:SGN)
Historical Stock Chart
From Oct 2024 to Nov 2024

Solgenics (LSE:SGN)
Historical Stock Chart
From Nov 2023 to Nov 2024