TIDMEDL
RNS Number : 1622W
Edenville Energy PLC
05 November 2014
05 November 2014
EDENVILLE ENERGY PLC ("Edenville" or the "Company")
(AIM:EDL)
Commission of Power Plant Feasibility Study at Rukwa Coal
Project, Tanzania and successful completion of GBP200,000 working
capital Placing
After extensive work and significant investment developing its
Rukwa Coal Project in Western Tanzania, the past 2 years have seen
Edenville Energy ('the Company'), achieve the following project
milestones:
-- Reported a JORC-compliant, Measured and Indicated Resource of
170 million tonnes of in-situ coal at its Rukwa Coal Project of a
quality suitable, after washing, for a Clean Coal Thermal Power
Plant
-- Defined the scope for a mine-mouth, Clean Coal Thermal Power
Plant of 100MW+ over a project life of 30 years
-- Received expressions of interest from several potential project partners
-- Secured environmental permitting for coal mining operations
via the award of the EIA certificate, required for the grant of a
full mining license
The Company is now pleased to report a number of positive
developments relating to the energy sector in Tanzania, which have
today led the Company to commission a Power Plant Feasibility Study
for a 100MW+ Clean Coal Thermal Power Plant at its Rukwa Coal
Project in South Western Tanzania.
- The Government of Tanzania's Power Reform Strategy and
Roadmap, published in June 2014, demonstrates commitment to expand
power generation capacity and transmission infrastructure over the
next decade. A significant part of this reform relates to the
construction of a new power grid in the west of Tanzania, which
will transmit power from a variety of sources, including Thermal
Power Plants. This confirms Edenville's strong position to
participate in the country's power development process via its
Rukwa Coal Project.
- Preparation work for the northern portion of the Grid network
is ongoing. This new grid infrastructure will run from Geita
through to Nyakanazi in Tanzania, extending towards Rwanda and
Burundi as part of the Eastern Africa Power Pool development
strategy.
- Edenville's Power Plant Feasibility Study ('PPFS') will
utilise data from Tanesco's existing feasibility work on the
planned Western Transmission Line; this study was initially based
on a 220kV grid system, with a revised upgraded study for a 400kV
grid proposed. The Western Transmission Line represents the section
of new grid infrastructure which runs from Nyakanazi south to
Mbeya, and is scheduled to pass within 12km of Edenville's Rukwa
Coal Project.
After a competitive tender process, Edenville is pleased to
announce that the Rukwa PPFS will be completed by Lahmeyer India, a
division of Lahmeyer International GmbH Germany. Lahmeyer's
experience in 165 countries, including several in Africa, includes
work for Project Developers, EPC Contractors, Equity Investors and
Financial Institutions.
Lahmeyer India has extensive experience in thermal power plant
design, construction, transmission and distribution along with a
strong background in the regulatory environment of various
jurisdictions.
The PPFS will include but not be limited to:
-- Selection of optimum capacity of power plant considering the
quality and quantity of coal available
-- The evacuation capacity of suitable grid infrastructure
-- Selection of suitable technology for the project
-- Preparation of preliminary balance diagrams, for Heat and Mass and Water
-- Development of preliminary flow diagram & schemes, layout and site positioning
-- Analysis of major features of the power plant including
facilities for interconnection with the state grid
-- Plant Mechanical System, Electrical System, Civil, Structural & Architectural Design
-- Environmental aspects including suitable measures for ash utilisation
-- Financial Analysis including computation of the cost of power
generation along with metrics for fuel supply
The study is expected to be completed within Q1, 2015. The PPFS
is key to Edenville progressing its Rukwa Coal Project on an
independent basis, enabling the Company to advance discussions
relating to project dynamics and the investment opportunity, whilst
maintaining control of the asset.
In addition, Edenville is pleased to announce a demand led
placing of 500,000,000 new ordinary shares of 0.02p each at the
market price of 0.04 pence on 3 November 2014, providing the
Company with GBP200,000 of additional working capital. The funds
have been raised from a small group of long-term, existing
shareholders to sustain working capital, advance additional test
work on the coal and to fund any additional work that may be
required as we progress through the feasibility process.
Application will be made for the Placing Shares to be admitted
to trading on AIM ("Admission"). It is expected that Admission will
become effective on or around 10 November 2014. Following this
issue of equity, the issued share capital of the Company will be
7,186,921,206. The Placing Shares will rank pari passu with the
existing ordinary shares.
In accordance with the Financial Conduct Authority's Disclosure
and Transparency Rules, the Company hereby announces that it has
7,186,921,206 ordinary shares of 0.02p each in issue, each share
carrying the right to one vote. The Company does not hold any
ordinary shares in treasury.
The above figure of 7,186,921,206 ordinary shares may be used by
shareholders in the Company as the denominator for the calculations
by which they will determine if they are required to notify their
interest in, or a change to their interest in, the share capital of
the Company under the Financial Conduct Authority's Disclosure and
Transparency Rules.
Rufus Short CEO of Edenville Energy comments:
"After considerable and positive feedback from power
consultants, potential partners and the Tanzanian authorities we
are confident that the time is right for Edenville to commission
the Power Plant Feasibility Study ("PPFS") and continue its
investment into the Rukwa Coal Project. The clarity and insight
that this will give to all parties either involved, or wishing to
be involved, in the project should allow the Company to navigate
the route towards power purchase agreements, involvement of
partners in the project and negotiations on funding. We look
forward to working closely with Lahmeyer India to complete this
study and to move the project forward to its next stage.
We are delighted that our long term shareholders recognise the
value in Edenville's Rukwa coal project and are supportive of the
Board and the progress made in recent months. This modest, demand
led raise brings sufficient new money into the company to progress
us closer to the partner ready stage whilst maintaining a
reasonable cash balance. We are confident that the coming months
will be positive in terms of advancing Edenville's Rukwa Coal
Project and look forward to providing the market with updates in
due course."
Contact
Edenville Energy Plc
Rufus Short - CEO +44 (0) 20 7653 9850
Cantor Fitzgerald Europe
Nominated Advisor and Corporate Broker
Stewart Dickson / Jeremy Stephenson +44 (0) 20 7894 7000
Newgate Threadneedle
Financial Public Relations
Roddy Watt / Edward Treadwell +44 (0) 20 7653 9850
About Lahmeyer International
Lahmeyer International is a leading international engineering
consultancy predominantly specialised in energy and water
infrastructures and is headquartered in Germany. The company
generates 80% of its revenues outside of Europe namely in Africa,
Asia and the Middle East. Additionally Lahmeyer International has
expertise in Hydropower and Water Resources, Building and
Transportation and Water Supply & Sanitation sectors. Lahmeyer
International is owned by Tractebel Engineering (GDF Suez).
About Lahmeyer India
Lahmeyer India, the Indian subsidiary of Lahmeyer International,
was founded in 1993 to service the engineering and power needs of
the Indian, and subsequently the International, power and
infrastructure sectors. Lahmeyer India has emerged as a leading
Independent Consulting Engineering Company providing advisory,
planning and consultancy services to various infrastructure and
power projects under varying stages of development, construction
and operations.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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