31 Jan 2011 15:16
Edenville Energy Plc
("Edenville" or the "Company")
(AIM: EDL)
£1.5million Fundraising and Grant of Options
Edenville Energy, the coal focused African energy exploration and development company, announces today that it has raised £1,500,000 through a subscription of 83,333,334 new ordinary shares in the Company at a price of 1.8p each.
The new shares will rank pari passu with the existing ordinary shares, and dealings on AIM are expected to commence in the new ordinary shares on 2 February 2011. Following the issue of ordinary shares in relation to this fundraising, the Company's issued share capital will consist of 3,446,216,406 ordinary shares of 0.02p each.
Funds will be used to commence drilling programmes at key coal targets, such as the Rukwa coalfield project, and progress additional geophysical exploration across the Company's portfolio of projects. Funds will also provide working capital to the Company.
Edenville intends to develop resources to internationally recognised standards across its portfolio in order to bring into production economically viable coal mines capable of initially supplying the domestic African power market. The Edenville projects sit predominantly within the Mtwara Development Corridor; an economic devolvement area created by the Government of Tanzania to promote a series of projects including the creation of new coal fire power stations.
The Board proposes to grant options to acquire ordinary shares in Edenville at an exercise price of 1.8p, subject to the terms of an option scheme, as set out below.
Director Name | Number of Ordinary Shares subject to option |
Simon Rollason | 10,000,000 |
Rakesh Patel | 10,000,000 |
Mark Pryor | 5,000,000 |
Sally Schofield | 2,500,000 |
The Board do not consider the grant of options will be sufficiently material as to affect the independence of Sally Schofield as a Non-Executive Director.
Simon Rollason, Chairman, commented "Today's successful placing allows Edenville to initiate a drilling programme at our primary coal targets in southern Tanzania. Following positive exploration results from the Rukwa coalfield project we intend to rapidly define a coal resource during the course of 2011."
31 January 2011
For more information | |
Edenville Simon Rollason / Rakesh Patel | +44 (0) 20 7099 1940 |
ZAI Corporate Finance Ltd Marc Cramsie / John Depasquale | +44 (0) 20 7060 2220 |
Threadneedle Communications Laurence Read/Beth Harris | +44(0)20 7653 9855 |