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Edenville Energy PLC (EDL)

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Tuesday 31 January, 2012

Edenville Energy PLC

Issue of Equity

RNS Number : 4938W
Edenville Energy PLC
31 January 2012
 

 

31st January 2012

Edenville Energy Plc

('Edenville' or the 'Company')

£2.5million Fundraising

Edenville Energy (AIM:EDL), the African energy focused exploration and development company, is pleased to announce a share placing (the 'Placing') of 1,000,000,000 new ordinary shares  in the Company at a price of 0.25 pence per share to raise £2.5 million (before expenses).  The shares will rank pari passu with all existing ordinary shares and dealings on AIM are expected to commence on 6th February 2012.

Following this issue the Company's issued share capital comprises 4,446,216,406 ordinary shares of 0.02p each.

The Placing proceeds will fund the proposed 2012 drill programme at the Company's Rukwa coal project in southern Tanzania, which is planned to evaluate coal mineralisation along strike from the area drilled in 2011 and also to test the down-dip depth extension of the intersections reported last year. It is anticipated that further test work at Rukwa during 2012 will allow a development decision to be made. In addition, the proceeds will also fund further exploration and development of the Company's portfolio of earlier stage coal assets in southern Tanzania during the coming year. The Company continues to work closely with Wardell Armstrong International ("WAI"), the global mining consultancy group, who will prepare the maiden resource estimation for the project based on the 2011 drill campaign, once all the outstanding results have been received from the laboratory.

Edenville's Chairman, Simon Rollason, commented "successful completion of this £2.5 million fundraising significantly strengthens Edenville's position as a potential developer of bulk tonnage coal assets in southern Tanzania with a view to supplying local and regional markets. Following receipt of the awaited results from the 2011 drilling programme at the Rukwa coalfield the funds will allow Edenville to progress a targeted exploration program to build significant economic resources at the site. Our objective remains to rapidly be at the stage to make a production decision on Mkomolo and Namwele, and expedite the evaluation of other opportunities we have identified in the area."

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



Newgate Threadneedle


Laurence Read/Richard Gotla

+44 (0) 20 7653 9855

 


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