Edenville Energy PLC Rukwa Coal Project Update (1340C)
June 13 2019 - 9:09AM
UK Regulatory
TIDMEDL
RNS Number : 1340C
Edenville Energy PLC
13 June 2019
13 June 2019
Edenville Energy PLC
("Edenville" or the "Company)
Rukwa Coal Project Update
Edenville Energy Plc (AIM: EDL), the AIM quoted company
developing a coal project in southwest Tanzania, is pleased to
provide an operational update for its flagship Rukwa Coal Project
(the "Project") following on from the completion of the fundraise
which was announced on 17 May 2019.
Plant Upgrades
The Company is pleased to report the majority of the planned
plant upgrades have now been completed, some of which are outlined
below.
One of the key upgrades has been further modifications to the
pre-screen, which was originally installed in January 2019. The
initial introduction of the pre-screen, which removes hard to
process material such as fine coal, has already resulted in a lower
use of consumables in the main plant, such as magnetite. Going
forward it will also enable a more efficient sorting of material
prior to it entering the main wash plant circuit, which in turn has
the potential to provide more coal for washing and a cleaner
recovery as it travels through the plant. With this in mind,
Edenville will now also look to process sections of the existing
fines stockpiles, thereby recovering a significant amount of coal
which can be washed. Finally, the Company has now introduced a coal
sizer at the start of the pre-screen to deal with any oversize
material prior to it reaching the screen. The sizer is currently
being assembled on site and is expected to be operational in July
2019.
A comprehensive spares package for the plant has also been put
in place, with additional purchases made. These parts are now
either on site or due for delivery in the near term. This should
help prevent any significant downtime in the future in the event of
machine failure.
Northern Mining Area
Edenville is pleased to confirm that road access to the new
northern mining area (the "Northern Area") is now in place. During
June 2019 the Company will upgrade the road in certain areas to
provide an adequate haul route from the pit to the plant.
Accordingly, mining is now expected to commence in the Northern
Area in the coming weeks. The first coal deliveries to the plant
from the Northern Area are scheduled for July 2019. In the meantime
the Company will continue mining the currently available pit area
and processing the existing stockpile to produce washed coal.
Sales
The Company is encouraged by the interest in its coal it has
received over the last few weeks, with several potential new
clients expressing a wish to purchase its washed coal. Although no
assurances can be given that these expressions of interest will
translate into formal contracts, the Company's Directors are
confident Edenville will be able to sell all the washed coal it
produces in the medium term to its existing and potential client
base.
Notice of Results
The audit of the Company's financial statements for the year
ended 31 December 2018 is nearing completion and the Company
anticipates announcing its results shortly, and in any event no
later than Friday 28 June 2019.
Rufus Short, Chief Executive Officer of Edenville, commented:
"Having received the balance of funds in mid-May 2019 from our
previously announced placing, Edenville has focused on the
completion of certain upgrades to the plant as well as opening up
the Northern Area. I am pleased to report these have either been
completed ahead of schedule or remain on track for completion next
month.
"I look forward to providing further updates over the coming
months as the upgraded plant becomes fully operational and the
Company looks to increase production once the Northern Area is
open. As previously disclosed the Directors believe the coal from
the Northern Area has the potential to provide greater yields than
areas mined previously. We consider Edenville is on track to become
cashflow positive within the next 10 months, targeting an initial
6,000 tonnes per month which we consider to be a breakeven level,
increasing to 10,000+ tonnes per month thereafter."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
For further information please contact:
Edenville Energy Plc
Jeff Malaihollo - Chairman
Rufus Short - CEO +44 (0) 20 3934 6630
SP Angel Corporate Finance LLP
(Nominated Adviser and Joint
Broker)
David Hignell
Jamie Spotswood
Abigail Wayne +44 (0) 20 3470 0470
Brandon Hill Capital Ltd
(Joint Broker)
Oliver Stansfield, Jonathan Evans +44 20 7936 5200
IFC Advisory Limited
(Financial PR and IR)
Tim Metcalfe
Graham Herring
Heather Armstrong +44 (0) 20 3934 6630
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
UPDXXLFFKQFBBBQ
(END) Dow Jones Newswires
June 13, 2019 09:09 ET (13:09 GMT)
Edenville Energy (LSE:EDL)
Historical Stock Chart
From Mar 2024 to Apr 2024
Edenville Energy (LSE:EDL)
Historical Stock Chart
From Apr 2023 to Apr 2024