Edenville Energy PLC Subscription to raise £1.25m (6220S)
October 04 2017 - 2:00AM
UK Regulatory
TIDMEDL
RNS Number : 6220S
Edenville Energy PLC
04 October 2017
4 October 2017
EDENVILLE ENERGY PLC
("Edenville" or the "Company")
Subscription to raise GBP1.25m
Edenville Energy plc (AIM:EDL), the company developing a coal
project in south west Tanzania, is pleased to announce a
subscription to raise GBP1.25 million (before expenses) through the
issue of 208,333,333 new ordinary shares of 0.02 pence each in the
capital of the Company ("New Ordinary Shares") at 0.6 pence per New
Ordinary Share to new and existing shareholders. In addition the
Company has issued 104,166,667 warrants to the subscribers on the
basis of one warrant for every two New Ordinary Shares, exercisable
at 0.8 pence per warrant at any time over the next 12 months (the
"Warrants" and each a "Warrant"; and together with the New Ordinary
Shares, the "Subscription"). The Subscription was over
subscribed.
The Company will apply the net proceeds of the Subscription to
the completion of construction work at, and for transport logistics
for, the Company's Rukwa Coal Project (the "Project"), working
capital to fund the increase in production over the next six months
and, in the appropriate circumstances, initiating expansion
options.
Management expects the net proceeds of the Subscription to take
the Project through to full production and the generation of
positive cash flows.
Since the decision in January 2017 to proceed with development,
the Project has taken only 8 months to construct. Opening of the
mine has already exposed considerable coal supplies in the upper
seams. The plan is for initial production of 5,000 tonnes of washed
coal in October, ramping up to at least 10,000 tonnes per month by
January 2018. A range of sizes of washed coal will be produced to
allow the product to meet specific end user requirements.
Production of washed coal is expected to start later this week.
Rufus Short, Edenville CEO commented: "The net proceeds from
this over subscribed placing are expected to take the Project to
the point where it is cash flow positive, a fundamental advance for
Edenville. We are in detailed negotiations with coal customers and
believe we currently have sufficient interest to justify our plans.
We look forward to Edenville becoming a significant coal producer
in the East Africa region and I look forward to providing our
shareholders with further updates in due course."
Admission and Total Voting Rights
Application for admission to trading on AIM of the New Ordinary
Shares on AIM will be made to the London Stock Exchange
("Admission") and Admission is expected to become effective on or
around 9 October 2017.
Following Admission, the issued share capital of the Company
will be 1,336,227,798 ordinary shares of 0.02 pence each. The New
Ordinary 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, following Admission, it has 1,336,227,798 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 1,336,227,798 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.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
For further information please contact:
Edenville Energy Plc
Jeff Malaihollo - Chairman +44 (0) 20 7652
Rufus Short - CEO 9788
Northland Capital Partners Limited
(Nominated Adviser)
Gerry Beaney
David Hignell +44 (0) 20 3861
Jamie Spotswood 6625
Optiva Securities Limited
(Broker)
Jeremy King +44 (0) 20 3137
Graeme Dickson 1902
IFC Advisory
(Financial PR and IR)
Tim Metcalfe
Graham Herring +44 (0) 20 3053
Heather Armstrong 8671
This information is provided by RNS
The company news service from the London Stock Exchange
END
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