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Edenville Energy PLC (EDL)

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Wednesday 20 April, 2011

Edenville Energy PLC

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 The Company also announces that it has withdrawn from the proposed acquisition in Tanzania referred to in the press release dated 24th March 2011.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 24th 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

 +44 (0) 20 7099 1940 



ZAI Corporate Finance Ltd


Ray Zimmerman/ Marc Cramsie

+44 (0) 20 7060 2220



Threadneedle Communications


Laurence Read

+44 (0) 20 7653 9855

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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