28 Mar 2023 09:16
28 March 2023
EDENVILLE ENERGY PLC
("Edenville" or the "Company")
Rukwa Operational Update
Edenville Energy Plc (AIM: EDL) provides an update on its Rukwa Coal Project ("Rukwa") in Tanzania.
Rukwa Operations
As previously announced, the Company has been focused on stockpiling run of mine coal to mitigate, as far as practicable, impact from the Tanzanian rainy season. A substantial stockpile of run of mine ("ROM") coal was accumulated, but this stockpiled ROM coal has proven difficult to wash due to its moisture content. The production of washed coal is therefore expected to be reduced for as long as the rains continue, which could be for several more months.
The Company continues to explore further opportunities in the Tanzanian coal market as they are presented, with efforts being increased given the robustness of the global coal markets and opportunities currently available within Tanzania.
Tanzanian Mining Commission
Edenville is in discussions with the Mining Commission in Tanzania (the "Commission") in relation to its Rukwa mining licence, having been advised by the Commission that the Company had historically failed to perform certain tasks required under its licence and that the licence could technically be in default of these requirements.
Edenville's senior management have held constructive discussions in Tanzania with the Commission and both parties have agreed to work on resolving any outstanding issues, whilst also ensuring the Company is in full compliance with local regulations.
The Company is continuing to run the day to day operations at Rukwa while continuing discussions with the Commission and looks forward to remedying the outstanding matters concerning the licence in consultation with the Commission on a timely basis.
Update on Dispute with Upendo Group Ltd
Since the Company's announcement on 9 February 2023 there have been no further developments in the Courts regarding Upendo Group Ltd.'s claim. Based on legal advice received, the Company remains confident with respect to its position and a further update will be provided in due course.
Envirom Debt
As previously reported, the Company reached agreement with Envirom Group AS ("Envirom") for certain costs to be recouped following an earlier aborted acquisition process. The Company has yet to receive any funds. The Company has therefore issued a statutory demand to Envirom in order to seek to obtain recovery of the debt.
Coal Sales
For the period from 1 January 2023 to 27 March 2023 the Company has sold 948 tonnes of washed coal generating revenue of approximately £34,500.
Commenting, Noel Lyons CEO of Edenville said: "We remain focused on resolving any legacy issues at Rukwa and remain confident that the challenges can be overcome. However, in conjunction with this, we are also focused on securing potential new and exciting coal opportunities."
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018.
For further information please contact:
Edenville Energy Plc | Via IFC Advisory |
Nick Von Schirnding - Chairman Noel Lyons - CEO | |
Strand Hanson Limited | +44 (0) 20 7409 3494 |
(Financial and Nominated Adviser) James Harris Richard Johnson | |
Tavira Securities Limited | +44 (0) 20 7100 5100 |
(Broker) | |
Oliver Stansfield | |
Jonathan Evans | |
IFC Advisory Limited | +44 (0) 20 3934 6630 |
(Financial PR and IR) | |
Tim Metcalfe | |
Florence Chandler |