JOHANNESBURG (miningweekly.com) – Aim-listed Edenville Energy would see a capital increase of £400 000 after it raised the subscription of 1.3-billion new ordinary shares by 0.02p to 0.03p apiece in an attempt to raise company capital.
The shares, which were raised after the coal-to-power project developer was granted a mining licence for its Rukwa coal deposit, in south-west Tanzania, would be placed together with 666-million warrants, exercisable at 0.04p a warrant.
The additional funds would enable Edenville to progress the key deliverables in the draft framework agreement with Tanzania Electric Supply Company, while allowing it to start common groundworks on site.
The company could also now engage in formal negotiations for a power purchase agreement (PPA) and transmission-line agreement, enabling it to appraise the near-surface coal contained with Rukwa’s 170-million-ton measured and indicated coal resource.
This near-surface coal was expected to provide the fuel source for the initial phase of any power station development and, together with the PPA, form the basis for a firm financing proposal with a power partner.
"We are incredibly pleased by the progress made in Tanzania in recent months and we thank the Tanzanian government for their continued support of Edenville as we move into a critical phase of project development.
“We have achieved significant milestones already this year. To drive the company forward towards agreeing to the terms of a PPA and securing debt financing, we require additional funds to complete a series of very specific tasks,” said CEO Rufus Short.