Sharenet Sites 
Sharenet Sites
Announcement Correction: Update re Settlement of Funds
IPSA GROUP PLC
(Incorporated and registered in England and Wales)
(Registration Number 5496202)
AIM Share Code IPSA ISIN GB00BOCJ3F01
JSE Share Code IPS ISIN GB00BOCJ3F01
("IPSA" or "the Company")
Correction: Update re Settlement of Funds
The following amendment has been made to the 'Update re Settlement of Funds and
Operations' announcement released on 20 July 2015. The amount now due to the Company's
principal creditor, Ethos Energy, is €2.85 million. All other details remain unchanged, the full
amended text is shown below.
Update re Settlement of Funds owed by Rurelec PLC and Operational update
IPSA notes the announcement made on 17 July 2015 by Rurelec PLC regarding the
completion of the sale of its stake in the Canchayllo hydroelectric plant in Peru. Since the
update on 2 March 2015 regarding the deferred consideration owed by Rurelec , Rurelec has
made an interim payment to the Company’s main creditor, Ethos Energy, on behalf of IPSA
so that the residual amount of the deferred consideration still owed to IPSA from the sale of
the Westinghouse Siemens gas turbines to Rurelec is now £2.91 million. The Company is in
discussion with Rurelec regarding the timing of the receipt of this balance although there is
no clarity yet on the timing of it.
IPSA also announces that, following its recent draw down of funds from the IDC for the
expansion of power capacity onsite at Newcastle, it has progressed its search to bring in a
black economic empowerment (BEE) partner at its operating subsidiary, Newcastle
Cogeneration Pty Limited (“NewCogen”). IPSA is now in negotiations with suitable BEE
partners willing to acquire for cash a holding in NewCogen, although there can be no
certainty a successful sale will be completed. Having a BEE partner would assist the Board’s
plans to add additional capacity at Newcastle under the new Gas to Power programme of the
South African Government.
The Board is satisfied with trading conditions at NewCogen following the successful MTPPP
contract extension with Eskom and the plant continues to operate well.
The Company's working capital remains tight and is being carefully managed. This will
remain to be the case and the Company is reliant on the receipt of the remaining balance of
funds owed by Rurelec from the sale of turbines to satisfy the amount of €2.85 million
(euros) now due to its principal creditor, being Ethos Energy, and a loan of £500,000 together
with accrued interest repayable to Radix together with the forbearance of these creditors. A
further sum of €2.6 million (euros) is due to Ethos Energy by 30 September 2015. The
Company also intends to sell its remaining balance of plant in relation to the previously sold
turbines held in its balance sheet at a value of £4 million and the proceeds from any sale of a
minority interest in NewCogen in order to satisfy its remaining creditors and provide
additional working capital for the Company.
For further information contact:
Peter R.S. Earl, Acting CEO
IPSA Group PLC +44 (0)20 7793 5615
James Joyce / James Bavister
WH Ireland Limited Ltd +44 (0)20 7220 1666
Riaan van Heerden
PSG Capital (Pty) Ltd +27 (0)21 887 9602
20 July 2015
Date: 20/07/2015 05:10:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
