3 Aug 2022 12:00
3 August 2022
Edenville Energy Plc
("Edenville" or the "Company")
Corporate Update
Following a period of previously announced disappointing performance at Rukwa Coal Project ("Rukwa"), Edenville is pleased to announce that a new experienced on-site management team has been mobilised to run its mine at Rukwa in Western Tanzania, with the local team expected to be in place as of today, 3 August 2022. This follows a visit to the site by CEO Noel Lyons and Paul Ryan the Company's recently appointed executive Board members.
The Company is also pleased to announce that it has offtake requests for an aggregate 5,000 tonnes of washed coal in August 2022, comprising a 4,000 tonne international export order to a new customer in Mombasa, Kenya, and 1,000 tonnes to a longstanding Tanzanian customer. Furthermore, the new customer has indicated a potential requirement of up to 12,000 tonnes per month which the Company will endeavour to fulfil over the coming months, although this will require a significant ramping up of production at Rukwa under the supervision of the new on-site management team and a formal offtake agreement has yet to be signed with this customer. All of the production targets above far exceed previous and recent production levels at the mine and as a result there may be challenges initially getting production up to these levels but the new on-site management will endeavour to achieve the above target.
In addition, the Company continues to make progress on the reversal of the transfer of Upendo Group Ltd.'s 10% economic interest in the joint venture, which holds the licences governing the Rukwa project, to a 10% direct holding on the principal production licence. A further update will be provided in due course.
Noel Lyons, Chief Executive Officer of Edenville, commented: "Following a period of poor production and lack of progress at Rukwa, the Company regained operational control at Rukwa. We are now putting in place a strategy to expand operations at Rukwa to deliver on both growth and shareholder value."
For further information please contact:
Edenville Energy Plc Nick Von Schirnding - Chairman Noel Lyons - CEO | +44 (0) 20 3934 6630 | ||
Strand Hanson Limited (Financial and Nominated Adviser) James Harris Rory Murphy
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+44 (0) 02 7409 3494 | ||
| Tavira Securities Limited (Broker) | +44 (0) 20 7100 5100 |
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| Oliver Stansfield Jonathan Evans |
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IFC Advisory Limited (Financial PR and IR) Tim Metcalfe Florence Chandler | +44 (0) 20 3934 6630 | ||