(Alliance News) - Edenville Energy PLC said Thursday it has made progress at its Rukwa coal project in Tanzania, following the receipt of GBP700,000 capital raise.
Edenville shares were trading 7.8% higher in London at 0.042 pence on Wednesday
On January 23, the coal producer said it raised GBP700,000 by placing 1.75 million shares at a price of 0.04 pence with existing shareholders, with proceeds to secure necessary working capital at Rukwa.
Following the receipt of funds, Edenville said it has reinstated an on-site operational advisor and completed a detailed review and assessment of the wash plant. The plant is now operating and continuous production is targeted for early March, the company said.
Also, critical spares including new belts have been ordered which are expected to reduce any future downtime.
Edenville said it believes that all economic coal has now been recovered from the southern pit, therefore equipment will shortly be relocated to the northern pit. Mining and hauling will be undertaken during periods of dryer weather, after current rainy season ends in the late April.
Alistair Muir, chief executive officer, said: "We are encouraged by the progress we have made since the receipt of funds, focusing firstly on re-establishing the workforce and secondly making essential modifications to the wash plant, including the delivery of a critical spares inventory and establishing the interim run of mine coal stockpile.
"We intend to re-establish continuous production at Rukwa, as the weather conditions allow, and look forward to providing further updates regarding progress as appropriate," Muir said.
Edenville said discussions with undisclosed potential strategic partner for the project are progressing and a non-binding heads of terms has been agreed, "covering a potential asset-level loan, a potential coal mining agreement, and a potential coal marketing agreement."
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
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