LONDON (Alliance News) - Edenville Energy PLC saw its share rise Wednesday after it said it has successfully completed a GBP200,000 share placing which it will use for working capital to continue investing in its Rukwa coal project in western Tanzania.
The company said it placed 500 million new shares on the market at a price of 0.04 pence each, which raised the GBP200,000 of additional working capital.
"The funds have been raised from a small group of long-term, existing shareholders to sustain working capital, advance additional test work on the coal and to fund any additional work that may be required as we progress through the feasibility process," it said in a statement.
Edenville Energy shares rose 11% Wednesday morning to 0.05 pence.
The African coal exploration and development company said that a number of positive developments in the energy sector in Tanzania have led to it to commission a power plant feasibility study for a 100 megawatt plus clean coal thermal power plant at its Rukwa coal project.
"The clarity and insight that this will give to all parties either involved, or wishing to be involved, in the project should allow the company to navigate the route towards power purchase agreements, involvement of partners in the project and negotiations on funding," said Chief Executive Rufus Short in the statement.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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