Acquisition

RNS Number : 2120F

Edenville Energy PLC

20 April 2011

 

20 April 2011

EDENVILLE ENERGY PLC ("Edenville" or the "Company")

Exploration Update, Tanzania

Edenville Energy plc (AIM:EDL), the coal focused African solid energy exploration and development company, today announces that it has acquired 3 additional exploration licences in south-western Tanzania. The Company also announces that it has withdrawn from the proposed acquisition in Tanzania referred to in the press release dated 24^th March 2011.

Licence	Holder	Interest	Status	Surface Area	Licence Expiry
6993/2009	Edenville International (Tanzania) Limited	100%	Prospecting Licence	300.00km2	15/03/2015
6124/2009	Edenville International (Tanzania) Limited	100%	Prospecting Licence	98.76km2	30/12/2012
6180/2011	Edenville International (Tanzania) Limited	100%	Prospecting Licence	96.23km2	15/02/2015

The 3 exploration licences form a contiguous block covering 494.99km² and lie adjacent to the Kiwira-Songwe Coalfield in south-western Tanzania. Total cash consideration paid to the private vendors is US$161,699.40. The licences are held by Edenville's 99.5% owned Tanzanian subsidiary, Edenville International (Tanzania) Limited.

The territory of the new licences is located to the northwest of the northern shore of Lake Nyasa and about 1,000km west-south-west of Dar es Salaam. The regional administrative centre is situated at Mbeya, approximately 70km to the north of the licences. Both the Tanzam Highway and the Tazara Railway, which link Dar es Salaam to Zambia, pass through Mbeya.

Earlier proposed acquisition

Edenville has not been able to reach a satisfactory conclusion to the proposed acquisition referred to in the press release dated 24^th March 2011 after making a site visit and conducting due diligence on the project and company.

Future Plans

The Company believes it is in the best interests of the shareholders to focus on new opportunities which we are continuing to review, to advance our Rukwa Coalfield Project and explore the newly acquired licences announced today.

Simon Rollason, Chairman of Edenville, commented that "These new licences allow us to build up a significant holding close to a known coalfield, which had historical production and power generation. This additional ground covers an area with a favourable geological setting for additional coal discoveries which complements our existing portfolio of coal focused assets within Southern Tanzania. We hope to complete the preparation work for drilling at our Rukwa Coalfield project shortly and remain fully funded to conduct exploration at Rukwa and on these newly acquired licences."

Contact:

Edenville Energy plc
Simon Rollason - Chairman Rakesh Patel - Finance Director www.edenville-energy.com	[phone]
ZAI Corporate Finance Ltd
Ray Zimmerman/ Marc Cramsie	[phone]
Threadneedle Communications
Laurence Read	[phone]

 

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