25 Jun 2018 13:50
25 June 2018
EDENVILLE ENERGY PLC
("Edenville" or the "Company")
Extension of MOU with Sinohydro
Edenville Energy plc (AIM: EDL), the company developing a coal project located in southwest Tanzania, is pleased to announce that it has extended the Memorandum of Understanding ("MOU") that it has with Sinohydro Corporation of China ("Sinohydro"), the Chinese EPC (Engineering, Procurement and Construction) contractor working alongside Edenville to advance the Company's Rukwa Coal to Power Project (the "Project").
The MOU, as detailed in the Company's announcement on 23 January 2017, has been extended for a further 18 months to 25 December 2019 to allow tasks to be completed on the technical and financial aspects of Project development and construction.
With greater clarity now being provided on the Tanzanian Government's plans for power development in western Tanzania, Edenville and Sinohydro can now focus on optimising the Project parameters in anticipation of the construction of the Sumbawanga to Tunduma section of the Zambia-Tanzania-Kenya (ZTK) power transmission line and associated infrastructure.
Whilst a feasibility study on a 120MW plant has already been carried out, the potential for a significantly larger plant of up to 300MW is now being considered and much of Sinohydro's work will be focused towards this option.
The Company considers the workload for both parties will increase significantly over the coming months as the options for power development are progressed following the recent announcement regarding the World Bank approving funding for the ZTK grid infrastructure.
In parallel work is already well advanced on baseline environmental studies in order to progress to a completed environmental and social impact assessment. This, along with the knowledge obtained from opening up the Company's Rukwa coal deposit, will be used by Sinohydro engineers to advance the design and planning for the power plant.
Although no assurances can be given at this stage that the MOU will lead to a successful outcome for Edenville, the Company believes the extension of the MOU is a positive development and looks forward to providing further updates over the coming months as the various work streams progress.
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.
For further information please contact:
Edenville Energy Plc Jeff Malaihollo - Chairman Rufus Short - CEO | +44 (0) 20 3934 6630 |
Northland Capital Partners Limited (Nominated Adviser and Broker) David Hignell John Howes Jamie Spotswood
|
+44 (0) 20 3861 6625 |
Optiva Securities Limited (Broker) Jeremy King Graeme Dickson
| +44 (0) 20 3137 1902 |
IFC Advisory (Financial PR and IR) Tim Metcalfe Graham Herring Heather Armstrong
| +44 (0) 20 3934 6630 |