March 6 (SeeNews) - UK-based renewable energy company Cindrigo Holdings [LSE:CINH] said its subsidiary Dravacel has applied for a six-month extension to the exploration licence for its Slatina 3 geothermal project in Croatia.
The requested extension will prolong the licence until October 2024.
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Cindrigo stated in a filing to the London Stock Exchange on Tuesday that the request aligns with the Croatian Hydrocarbon Council's regulations. The extension is necessary to complete the work required for transitioning to the exploitation phase.
Cindrigo expressed confidence that the licence extension will be granted shortly.
Investment company 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 pounds ($12.7 million/11.7 million euro) convertible loan with TRAM, until the licence extension is granted.
"We believe that the decision to pause site operations and the drawdown of TRAM's funds until we receive confirmation of the licence extension represents a prudent approach to managing the Project and its funding requirements,” Lars Guldstrand, CEO of Cindrigo said.
"We still have high confidence in the Slatina 3 project's potential which is underpinned by compelling geothermal data indicative of a high-quality reservoir,” he added.
To date, nearly 8.0 million euro has been invested in the project, with about 3.0 million euro allocated in 2024 alone.
($ = 0.920 euro)