(Alliance News) - Shares in Edenville Energy PLC rose Wednesday as the firm signed two "significant" coal supply contracts for its flagship project.
Further, the company also said a second potential investor has expressed interest in providing funding for the project.
The two contracts, covering coal from Edenville's Rukwa project in south-west Tanzania, will see the company supply 6,000 tonnes of washed coal per month to a customer in Rwanda and 3,000 tonnes a month to one in Uganda.
Shares were 7.7% higher on Wednesday morning in London at a price of 0.035 pence each,
The Rwandan company is Tara Group Ltd, part of Kitanyoe Group Co Ltd, which supplies coal, gypsum, limestone, and calcite to the industrial sector. In Uganda Edenville will supply coal to Springwood Capital Ltd, which also supplies commodities to the industrial sphere.
Edenville expects to be in a position to supply coal to these customers before the end of the first quarter of 2020.
At the end of November, Edenville said it needed investment from a partner to keep Rukwa going at acceptable levels, and said at the time it was in "advanced" talks with an investor.
However, it said Wednesday another party has expressed interest, adding the two new coal supply deals will make the project more attractive to partners.
Chief Executive Alastair Muir commented: "I would like to acknowledge the project team's efforts, and particularly those of former CEO Rufus Short, for their groundwork and efforts in making these contracts possible. The project has a significant advantage being the most northerly coal mine in the region by some 700 kilometres.
"I believe these contracts represent an important first step; now Rukwa has to deliver and assuming the required operational funds are secured we should see the mine and plant delivering as initially planned and our goal of becoming cash flow positive being realised. I look forward to providing our shareholders with further updates in due course."
Muir became Edenville's CEO in October, following the stepping down of Rufus Short to non-executive director.
By George Collard; georgecollard@alliancenews.com
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