(Alliance News) - Edenville Energy PLC said Friday it has raised GBP300,000 through a placing which will go towards accelerating mining and processing operations at the Rukwa coal project in Tanzania.
In addition, the company said it has postponed its proposed share consolidation to 2020 at the earliest, following further consultation with its shareholders.
Edenville issued 600.0 million shares at a price of 0.05 pence per share, through joint broker Brandon Hill Capital Ltd.
Shares in the coal producer were 14% higher at 0.062 pence on Friday in London.
Specifically, the proceeds will go towards working capital, following the decision to acquire new equipment and change shifts to increase Rukwa's productivity.
In late August, Edenville said it had acquired two 30-tonne trucks for use in mining load and haul operations at Rukwa, while the wash plant was set to move to a double shift.
"Edenville has already witnessed an increase in productivity since this recent change in the business. Accordingly, with this modest working capital raise, the directors believe the company remains on track to become cash flow positive from operations during the first half of 2020," said Chief Executive Officer Rufus Short.
Following the issue, Edenville Energy has 5.06 billion shares issued overall.
