LONDON (Alliance News) - Edenville Energy PLC said on Monday it intends to raise a total of GBP510,000 through two placings, which will go towards working capital and further development of the Rukwa coal project in Tanzania.
Edenville will conduct a firm placing of 500.0 million shares at a price of 0.02 pence per share, raising GBP100,000, while GBP410,000 will be raised through a conditional placing of 2.05 billion shares at the same price.
Shares in the coal project developer were 76% higher at 0.045 pence on Monday.
The placing will be undertaken by Brandon Hill Capital, which has also been appointed as Edenville's joint broker.
Specifically, proceeds from the share issue will be for developing the Rukwa project to increase the run-of-mine coal for processing by opening up the project's northern pit area.
The placing is subject to gaining shareholder approval at Edenville's general meeting on May 17, for granting authority to the company to issue shares.
"Accordingly, subject to shareholder approval of the conditional placing, the proposed financing of GBP510,000, coupled with the reduction of salaries by the board and other cost-saving measures, the company now expects to have sufficient capital to enable a return to full operations," said Chair Jeffrey Malaihollo.
"Moreover, Edenville also expects to be able to benefit for the first time from the additional investment in plant and equipment that was made in the second half of 2018, whilst also opening up the new northern mining area at the project, which should collectively lead to a further increase in production levels," Malaihollo added.
