JOHANNESBURG (miningweekly.com) – Aim-listed Edenville Energy has raised £2-million through an oversubscribed subscription of 250-million new ordinary shares at 0.8p apiece.
The company also issued 125-million warrants to the subscribers on the basis of one warrant for every two new ordinary shares, exercisable at 1.08p per warrant, at any time over the next 18 months.
The net proceeds from the subscription will be used predominantly for the advancement of mining development at its Rukwa coal-to-power project in south-west Tanzania and to facilitate its progress to full coal mining operations as soon as possible.
This includes the purchase of a wash plant and crusher, facilitating the transportation and installation of these items on site in Tanzania, the acquisition of mining equipment for an initial planned production of up to 10 000 t/m of coal, and completing land compensation requirements as required.
Edenville will further use the funds to build supporting infrastructure, including weighbridge facilities and implementing systems for coal delivery to customers.
CEO Rufus Short said the subscription proceeds would establish a “step change” in the development of its activities in Tanzania, allowing the company to become a coal producer.