(Alliance News) - Edenville Energy PLC on Thursday said it has raised GBP1.5 million through a direct subscription by two Africa-focused mining investment groups.
Shares in Edenville were up 36% at 7.48 pence each in London on Thursday morning, giving the company a market capitalisation of GBP1.9 million.
The London-based thermal coal developer said it will issue 29.4 million shares at 5.0p each, a slight discount to the stock's price of 5.5p on Wednesday.
Q Global Commodities Group will subscribe for GBP879,330 worth of shares and will own a 30% interest in Edenville. Gathoni Muchai Investments Ltd will subscribe for GBP588,670 worth and will hold a 20% interest.
QGC and GMI also will receive warrants allowing them subscribe for 5.5 million more shares at 25p each until May next year.
Edenville will use the funds for the ongoing capital requirements and due diligence costs associated with ongoing review work of potential new and strategically complimentary projects in Africa, it said.
The capital raising is conditional on shareholder approval at a general meeting expected to be held in early July.
Edenville also on Thursday said Jason Brewer, a director of GMI and chief executive officer of AQSE-listed Marula Mining PLC, will join the company as an executive director, effective immediately.
Non-Executive Chair Nicholas von Schirnding will step down as a director of Edenville after the general meeting. He will be replaced then by Quinton van der Burgh, who is CEO of QGC.
Edenville also said there will be a preliminary hearing in June regarding its claim for the reversal of Upendo Group Ltd's 10% interest in the local joint venture which holds licences governing Rukwa, will be heard in court in Tanzania.
By Sabrina Penty, Alliance News reporter
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