20th May 2016 11:41
LONDON (Alliance News) - China New Energy Ltd on Friday noted a movement in its share price and said its prospective partner is close to securing the Investment Promotional & Protection Agreement on its bioethanol project in Zambia.
China New Energy said Sunbird Bioenergy Africa Ltd, its partner on the project, has been advised by the Zambian Development Agency that terms of the IPPA have been agreed, and the agreement is set to be signed shortly.
China New Energy signed a memorandum of understanding with Sunbird Bioenergy last year which will see the pair work together to develop two biofuel refineries in Zimbabwe and Zambia.
China New Energy noted, however, that while this is an "important step" in the process before commencing work on the project, there remain a number of milestones to be concluded before a formal agreement with Sunbird is signed.
Shares in China New Energy were up 96% to 2.55 pence on Friday, one of the best performers in the AIM All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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