LONDON (Alliance News) - Edenville Energy PLC Wednesday said it has received an expression of interest from the engineering, procurement and construction division of a multi-national conglomerate to partner with Edenville in the development of an integrated mining and clean-coal power station at the Rukwa Coal Project in Tanzania.
The African coal exploration and development company said that the conglomerate, which Edenville said is a prominent engineering and technology group headquartered in East Asia, outlined its interest after extensive due diligence and discussions.
Edenville said the expression of interest contains several conditions and project milestones, with the objective of entering into an exclusive development agreement. The two parties are currently working towards completion of these processes, but Edenville noted that there can be no certainty that the deal will go ahead.
The company added that a third party specialist consultancy has produced a comprehensive report which includes a suggested development framework to progress the project, showing a project size in line with the company's stated strategy of delivering a power facility of over 100 megawatts capacity.
Edenville said the suggested equipment for the power station incorporates the latest clean coal technology to treat the fuel and waste products.
In 2013, the company progressed from an exploration to an early stage development company, with its prime focus being the Rukwa coal deposit, which achieved an upgraded measured and indicated resource of 171 million tonnes of raw coal, with an additional 2 million tonnes in the inferred category, as part of a resource report announced in September 2013.
In late 2013, Edenville entered into early stage discussions with potential Asian partners to develop the Rukwa site, and it has submitted an environmental impact assessment for the project in order to start a small-scale pit operation at the site. The company reiterated earlier in June that it expects permissions to be in place by mid-2014.
Edenville Energy shares were up 7.3% to 0.0590 pence, putting it amongst the top AIM ALL-Share risers on Wednesday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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