Edenville agrees revised repayment schedule with Lind

15th January 2021 By: Tasneem Bulbulia - Creamer Media Reporter

Aim-listed Edenville Energy has agreed a revised repayment schedule with Lind Partners, following constructive dialogue with the company regarding the repayment terms of its outstanding funding agreement with Lind.

As announced on October 6, 2020, Lind requested Edenville repay the total outstanding balance of the funding agreement, being $580 000, by November 30, 2020.

In terms of the revised schedule, the company will pay Lind $116 000 in cash, being 20% of the outstanding debt, by January 31.

The balance of $464 000 will be repaid in monthly instalments of $50 000, starting from the end of April.

The monthly instalments may be paid in cash or via the issuance of shares by mutual agreement.

No further interest or charges will be applied to the $580 000 headline figure.

Following settlement of the placing, Edenville will have sufficient capital to meet its outstanding obligations to Lind, the company said.

It noted that its cash position is expected to be further strengthened by increased production and sales of washed coal from its flagship Rukwa mine, in Tanzania, during the course of this year.

Edenville has conditionally raised £900 000 (before expenses) by way of a placing of new ordinary shares in the company with new and existing shareholders through Brandon Hill Capital.

OPERATIONAL UPDATE

Edenville now expects to hand over operations at Rukwa to its strategic partner Infrastructure and Logistics Tanzania (ILTL) in February, pursuant to the terms of a previously announced coal mining agreement between the two parties.

The company acknowledged that this has taken longer than previously envisaged, with timing impacted by both the global Covid-19 pandemic and the Tanzanian general elections, which took place on October 28, 2020.

Both ILTL and the company have continued to work closely during this period, not only on handover preparations but also on securing additional contracts for the sale of washed coal from Rukwa, Edenville said.

It believes both the handover and additional contracts will come to fruition in February and, in the meantime, Edenville International – the company's in-country operating company – is continuing to meet current customer orders and demands, it said.

ADDITIONAL ASSETS & BOARD RESTRUCTURING

Given the expected handover of operations at Rukwa in the current quarter to ILTL, combined with the anticipated cash flow to be received from Rukwa, the board of Edenville will also use its existing networks to identify new potential projects that could be accretive to the company.

To further streamline costs during this period, Jeff Malaihollo will assume the title of CEO of the company, in addition to his current chairperson role, with no additional remuneration.

Alistair Muir will continue as a director of the company responsible for Tanzanian operations.