REG - Cindrigo Hldgs Ltd - Croatian Geothermal Project Licence & Funding

Cindrigo HoldingsAnnouncement

05/03/2024 16:00

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RNS Number : 6976F  Cindrigo Holdings Limited  05 March 2024

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
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5 March 2024

 

Cindrigo Holdings Limited

('Cindrigo' or the 'Company')

 

Updates on Croatian Geothermal Project Licence and Funding

 

Cindrigo (LSE:CINH) announces that its subsidiary Dravacel Ltd ("Dravacel")
has applied for a further six month extension to the exploration licence at
its Slatina 3 geothermal project in Croatia (the "Project") which, when
granted, will extend the expiration of the licence to the end of October 2024.

 

The request to extend the Slatina 3 licence for a further six months (the
"Licence Extension") aligns with the regulatory framework of the Croatian
Hydrocarbon Council and is required to be able to finish the work to move to
an Exploitation Phase. The Company is confident that it has demonstrated that
sufficient work has been done on the site to demonstrate its commitment and
belief in the commercial viability of the Project, and that the Licence
Extension will be granted shortly.

 

Tri Ri Asset Management ("TRAM") and Cindrigo have agreed to postpone the
drawdown of funds from TRAM for Slatina 3 development, under the £10 million
convertible loan with TRAM (see RNS dated 20 February 2024), until the Licence
Extension is granted.

 

Whilst it was previously anticipated that deep drilling would be initiated
during February 2024, Dravacel has, to accommodate the timing of the license
extension and draw down of funds, paused further drilling operations at the
Project site until the Licence Extension is confirmed. The Company believes
that once the Licence Extension is granted, and funds are drawn down and work
recommences, it will have sufficient time and remain in a position to
progress the Project to the exploitation phase.

 

Commenting, Lars Guldstrand, CEO of Cindrigo said: "We believe that the
decision to pause site operations and the drawdown of TRAM's funds until we
receive confirmation of the licence extension represents a prudent approach to
managing the Project and its funding requirements.

 

"We still have high confidence in the Slatina 3 project's potential which is
underpinned by compelling geothermal data indicative of a high-quality
reservoir. To date, nearly €8 million has been invested in the Project, with
approximately €3 million allocated in 2024 alone, which illustrates our
unwavering commitment to its success.".

 

 

**ENDS**

 

 

For more information please contact:

 

Cindrigo Holdings Limited

Lars Guldstrand
CEO
+44 (0) 7408 861 667

 

Hannam & Partners (Financial Advisor & Corporate Broker)

Samuel Merlin, Sean
Urquhart
+44 (0) 20 7907 8500

 

St Brides Partners Ltd (PR)

Paul
Dulieu
+44 (0) 20 7236 1177

 

 

Notes:

 

Cindrigo Group is an active clean baseload power developer engaged in the
renewable energy sector. Its current focus is on the construction of an
initial 20 MW geothermal power plant located in Croatia, but a number of other
projects are also underway, primarily in the Pannonian Basin of Central
Europe.

 

Cindrigo aims to have contracts in place for geothermal power plant projects
with up to 200 MW of contracted capacity within a year, up to 450 MW within
three years and 1000 MW by 2030.  The financing for each power plant project
will be primarily on a structured project finance basis within special purpose
vehicles for each project.

 

Cindrigo is in the process of seeking approval by the FCA of a prospectus in
respect of its proposed application for re-admission to the standard segment
of the Official List and to trading on the Main Market of the London Stock
Exchange.

 

 

Forward-Looking Statements This press release contains forward-looking
statements that involve risks and uncertainties. These statements are not
guarantees of future performance, and actual results may differ materially.
Investors are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof.

 

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