14th Jun 2016 09:22
LONDON (Alliance News) - Edenville Energy PLC on Tuesday revealed a share subscription to raise GBP432,500 before expenses, in a move backed by its top executives.
In a statement, the AIM-listed company, which is developing a coal-to-power project in south west Tanzania, said it is issuing 1.92 billion shares priced at 0.0225 pence each, together with 961.1 million warrants. The warrants were issued on the basis of one warrant for every two subscription shares, exercisable at 0.03 pence per warrant at any time over the next 12 months.
"The net proceeds from the subscription will be used for the advancement of mining development, including bulk sampling and analysis, progressing regulatory requirements for mine and power development with Tanzanian government institutions, the progression of commercial discussions with Tanesco and general working capital requirements," Edenville Energy said in a statement.
Shares in Edenville Energy were down 6.8% at 0.0233p on Tuesday morning in London.
The company's executive directors are participating in the fundraising, Edenville Energy said, in a move to "demonstrate their support" for the company and existing shareholders.
Rufus Short, chairman and chief executive officer, and Mark Pryor, chief operating officer, each subscribed for 44.4 million shares.
Their support for the fundraising means they will each own a total of 44.4 million shares in the company. 44 million shares is equivalent to a 0.38% stake in Edenville Energy.
By Samuel Agini; [email protected]; @samuelagini
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