Aim-listed Edenville Energy has completed its fundraising, securing the necessary working capital to meet the current contracted production demands of up to 12 000 t of washed coal a month from its flagship Rukwa coal project, in Tanzania.
Edenville has raised £700 000, before expenses, by way of the placing of 1.7-billion new ordinary shares valued at 0.02p each in the company at a placing price of 0.04p a share with existing stakeholders through Brandon Hill Capital.
In addition, subscribers in the placing will be issued one warrant for every two placing shares subscribed for. The warrants have a two-year life and will expire on January 23, 2022, and have an exercise price of 0.06p a share.
The issue and allotment of the placing shares will use the majority of the company's existing share authorities, and as such, Edenville says it will shortly be calling a general meeting to seek renewal of share authorities to enable any warrant holder to exercise their warrants.
To ensure sufficient access to working capital if required, the company has been advised by private lender Brian McMaster that, in addition to his direct equity of subscription for £300 000, he would be willing to provide a loan of £300 000 to the company.
The proposed loan is subject to the completion of formal documentation and the consent of Lind Partners.