Source - RNS
RNS Number : 1388L
Edenville Energy PLC
29 September 2016
 

29 September 2016

EDENVILLE ENERGY PLC

("Edenville" or the "Company")

Placing to raise £500,000

Edenville Energy plc (AIM:EDL), the Company developing a coal-to-power project in south west Tanzania is pleased to announce that it has raised £500,000 (before expenses) through the issue of 125,000,000 new ordinary shares of 0.02 pence each ("Ordinary Shares") in the capital of the Company at a price of 0.4 pence per Ordinary Share (the "Placing Shares") to new and existing shareholders (the "Placing"). In addition to the Placing, which was oversubscribed, a total of 62,500,000 warrants have been issued to the subscribers on the basis of one warrant for every two Placing Shares, exercisable at 0.54 pence per warrant at any time over the next 12 months.

The net proceeds from the Placing will be used for the advancement of commercial mining operations at the Company's Rukwa site in Tanzania, the continuation of the technical and regulatory requirements for the Company's Rukwa Coal to Power Project and for general corporate requirements.

Admission

Application will be made for the Placing Shares to be admitted to trading on AIM ("Admission"). It is expected that Admission will become effective on or around 4 October 2016. Following the Placing, the issued share capital of the Company will be 746,353,005 Ordinary Shares. The shares issued in the Placing will rank pari passu with the existing Ordinary Shares.

Following the Admission of the Placing Shares, there will be a total of 746,353,005 Ordinary Shares in issue with each share carrying the right of one vote.  The Company does not hold any ordinary shares in treasury. The above figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or change to their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules.

Prospecting Licence

A new Prospecting Licence ("PL") has been granted to the Tanzanian subsidiary of Edenville.  PL 10884/2016 replaces PL 6101/2009, subsequent to the carve out of the Company's Mkomolo mining licence (ML 562/2016).  PL 10884/2016 is 30.1 square km in size. 

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

Rufus Short, CEO commented: "We have been seeing strong interest from potential commercial customers for our coal following the government's recent ban on coal imports into Tanzania.  These funds have been primarily raised to progress and take advantage of these opportunities to move Edenville rapidly to become a coal producer, albeit likely at a modest scale in the first instance.  Our primary focus remains developing our Rukwa Coal to Power project which will be able to fully exploit our coal resource, but moving into production will both provide an income stream for the Company and demonstrate the quality of our coal."

For further information please contact:

Edenville Energy Plc

Rufus Short - CEO

 

+44 (0) 20 7652 9788

 

Northland Capital Partners Limited (Nominated Adviser)

Gerry Beaney

David Hignell

 

+44 (0) 20 3861 6625

 

Optiva Securities Limited (Broker)

Jeremy King

Graeme Dickson

 

+44 (0) 20 3137 1902

 

IFC Advisory

(Financial PR and IR)

Tim Metcalfe

Graham Herring

Heather Armstrong

 

+44 (0) 20 3053 8671

 

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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