12th May 2015 11:24
LONDON (Alliance News) - Edenville Energy PLC said Tuesday it will begin the next stage of its exploration programme shortly, with the aim of better defining extensions to its Rukwa coal project in Tanzania.
Edenville said the project is already known to host 171 million tonnes of measured and indicated coal, which is sufficient to support a 120 megawatt power station over the life of the project, but a recent power plant feasibility study outlined the potential to scale the power station beyond this as power demand increases over time.
The exploration programme is expected to generate "significant information" for the potential for additional coal, and is relatively low-cost, it said.
"We are pleased to be embarking on the next stage of our exploration programme which is expected to better delineate our already substantial coal resource. The Mining Licence application process is on schedule, and we look forward to submitting the application before the end of June," said Chief Executive Officer Rufus Short in a statement.
The company's equity financing facility with Darwin Strategic Ltd expired early, as agreed with Darwin on Monday. There are no penalty fees payable for not using the remainder of the facility or its early expiration. Darwin will continue to hold 47.5 million warrants for shares in Edenville at a subscription price of 0.4 pence.
Shares in Edenville are trading down 0.8% at 0.0595 pence Tuesday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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