LONDON (Alliance News) - IPSA Group PLC Friday said it has secured a short-term loan of GBP500,000 from Radix International Ltd, which it will use to fund the installation programme for two Jenbacher gas engines it acquired last year.
IPSA said the loan is for the next six months at an interest rate of 1% per month.
The power producer, which operates in South Africa, said the installation programming with add 3.4 megawatts to its co-generation site in the country. The engines are expected to be in operation by September.
AIM-listed IPSA said the engines have arrived in South Africa and are expected to materially add to the profitability of the Newcastle Co-Generation plant bringing the total increase in plant capacity to 40% since the end of 2013.
The company also said Friday that it is progressing the transfer to Rurelec PLC of two Siemens Westinghouse 701DU turbines. Rurelec is completing arrangements for storage and shipment of the two turbines as part of the agreed hand-over arrangements.
At the time of the deal last year, IPSA said Rurelec, an operator of power generation assets in Latin America, would pay a total consideration of around GBP16.1 million of which GBP11.9 million would comprise the initial consideration, while the balance of GBP4.2 million would be deferred on specific agreed terms.
"The deferred consideration remains outstanding for the time being," IPSA said in a statement Friday.
IPSA Group shares were quoted up 1.6% at 3.17 pence Friday morning.