Aim-listed Edenville Energy has entered into a conditional $2.75-million convertible funding agreement with an entity managed by Lind Partners.
Edenville, which is developing the Rukwa coal project in south-west Tanzania, will use the funds for working capital and expansion purposes.
Under the terms of the agreement, Edenville will receive an immediate $750 000 loan that will be used to buy a second loader to load the pre-screen plant and coal delivery trucks; to buy a second excavator to open up the new mining area to the north of the current excavations; for the provision of further on-site trucks; for site lighting to enable a 24-hour-a-day operation; and for an additional spares package for the site plant and equipment to reduce any delays in production.
A further $2-million may be drawn down by Edenville thereafter, subject to mutual agreement between the company and Lind.
“We are pleased to have secured this funding, which will allow us to expand our coal production activities and take further advantage of the demand for our coal that we are currently experiencing.
“We have explored a number of funding options and believe, of the options available, the structure of the convertible agreement provides the company with the appropriate amount of flexibility to allow us to accelerate our growth strategy,” Edenville CEO Rufus Short said in a statement issued on Tuesday.