JOHANNESBURG (miningweekly.com) – African coal explorer Edenville Energy is seeking to identify near-term revenue opportunities to reduce its reliance on external financing, as well as to fulfill its longer-term objective of supporting a power solution in western Tanzania.
“The company is in the early stages of identifying near-term revenue opportunities and will provide further updates as appropriate,” it said.
As part of its strategy to focus on core assets, and following an ongoing review of its portfolio of licence interests, Edenville had decided to relinquish its noncore PL5420 uranium licence. This would enable it to focus its financial resources on the areas most likely to add value in the near term.
Edenville said that relinquishment of this licence was expected to reduce the company’s work commitments over the next 12 months by about $180 000.
“This decision will allow Edenville to continue its cash management programme and direct capital to the Rukwa coal project, which the board believes represents the best value for shareholders,” Edenville said.
Meanwhile, the company noted that the milestones achieved since the release of its November 2013 strategy had increased the company’s understanding of the project and its potential contribution to Tanzania’s power reform strategy.
“As confidence in the project has increased, additional work has been commissioned which will be completed in early 2015.
“Amid challenging conditions for early-stage mining companies, the directors believe the company has made tangible progress, interfacing with macro level developments in Tanzania and, as such, further commitment and investment to progress the Rukwa coal project is warranted,” Edenville said.