LONDON (Alliance News) - Edenville Energy PLC Wednesday said it has raised GBP250,000 from conducting a placing to advance work at its activities in Tanzania.
Edenville placed 625.0 million new shares in the company at 0.04 pence per share, representing a discount to the closing price of Edenville shares on Tuesday at 0.0575p.
On Wednesday morning, Edenville shares were trading down 13% to 0.0500p.
The new shares will enlarge the company's issued share capital by more than 7%, pushing the total amount of shares in issue to 9.10 billion from 8.48 billion.
The funds will be used to progress the engineering works for the power plant at the Rukwa coal-to-power project in Tanzania with Ruhn Power, under a collaboration deal announced Tuesday. That deal is the first step towards a full engineering, procurement and construction contract being awarded.
In addition, Edenville said it will allow the company to progress negotiations with the Tanzanian Ministry of Energy and Minerals and Tanzanian Electric Supply Co about the development of the Rukwa project.
"The company has always used funds prudently and only raised capital when needed to advance the project and to ensure its continued operational viability and commitments. The company will continue to operate in this manner and only seek funding when appropriate or available," Edenville said in a statement.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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