(Alliance News) - Edenville Energy PLC on Friday said an agreement with Lind Partners LLC regarding a funding agreement has been reached.
Edenville Energy shares climbed 42% on the news at 36.20 pence each in London on Monday morning.
In early October, Lind requested Edenville repay the total outstanding balance of a funding agreement, being USD580,000, by November 30 of last year. The company has since been in talks with Lind regarding the repayment.
The Tanzania-focused coal miner said it will pay Lind USD116,000 in cash by January 31. The remainder will be paid in monthly instalments of USD50,000, starting from the end of April.
No further interest will be charged by Lind on the headline figure.
Edenville additionally announced it has raised GBP900,000, approximately USD1.2 million, through the placing of 3.6 million shares at 25 pence per share.
The proceeds of the placing will go towards paying off the money owed to Lind.
The coal miner has been struggling as production in the fourth quarter of last year at its flagship Rukwa coal project in Tanzania did not meet expectations. This was due to the start of the rainy season in November and "working capital constraints", the company said end November.
In November 2018, Edenville entered into a conditional convertible funding agreement with Lind to make up to USD2.8 million available for working capital and expansion purposes. An initial USD900,000, USD750,000 after costs, was drawn-down immediately.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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