Edenville Energy PLC Update on Recommencement of Operations at Rukwa (4473U)
July 29 2020 - 2:00AM
UK Regulatory
TIDMEDL
RNS Number : 4473U
Edenville Energy PLC
29 July 2020
29 July 2020
EDENVILLE ENERGY PLC
("Edenville" or the "Company")
Early Recommencement of Operations
Coal Mining Agreement and Loan Agreement Effective 1 September
2020
Update re Sales & Marketing Agreement
Edenville Energy Plc (AIM: EDL), the AIM quoted company
operating the Rukwa Coal Project in southwest Tanzania (the
"Project" or "Rukwa"), is pleased to advise that the recommencement
of operations at Rukwa has been brought forward and will now begin
on Monday 3 August 2020. The earlier restart follows the request
and subsequent prepayment from an existing customer.
As per the Company's announcements of 8 June 2020 and 22 July
2020, Edenville has entered into a Coal Mining Agreement and Loan
Agreement with its new strategic partner, Infrastructure Logistics
Tanzania Limited ("ILTL"). Both of these agreements were subject to
the agreement of a commencement date for operations with ILTL (the
"Commencement Date"), which in turn was dictated by the ability of
ILTL to relocate key operational personnel to site from
international locations. Edenville is pleased to confirm the
Commencement Date has now been agreed with ILTL as 1 September
2020. Accordingly, Edenville will handle the initial restart in
consultation with ILTL, before handing over operational control to
ILTL on 1 September 2020.
The Company also recently stated its intention to enter into a
Sales and Marketing Agreement with ILTL to market coal to
additional customers beyond Edenville's existing customer base at
an agreed rate per tonne of washed coal that will be paid to
Edenville, thereby providing additional revenue streams. In
addition, ILTL will also provide an anchor tenancy at Rukwa, via
the initial purchase of a minimum of 3,000 tonnes of washed coal
per month, before increasing to 5,000 tonnes per month over the
ensuing 12-month period. With the confirmation of the Commencement
Date Edenville expects to finalise and enter into this agreement
during August 2020.
Commenting, CEO of Edenville Alistair Muir, said:
"I am delighted to confirm the restart of operations at Rukwa
next week. An existing customer is keen to take delivery of Rukwa
coal and has now paid in advance to ensure delivery. Prior to the
suspension of operations, the Company had built a substantial order
book for Rukwa coal. Following the restart Edenville will look to
refresh those outstanding orders for a progressive build-up of
production towards 10,000 tonnes per month.
"In addition, we are happy to have finalised a Commencement Date
with ILTL for 1 September 2020, which triggers our Contract Mining
Agreement and Loan Agreement. Ahead of then we expect to have also
finalised the Sales and Marketing Agreement, which will further
boost our contracted sales figures.
"I thank all shareholders for the patience whilst Rukwa has been
offline as a result of COVID-19 and I look forward to updating the
market during August."
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
Alistair Muir - CEO +44 (0) 20 3934 6630
SP Angel Corporate Finance
LLP
(Nominated Adviser)
David Hignell
Charlie Bouverat
Abigail Wayne +44 (0) 20 3470 0470
Brandon Hill Capital Ltd
(Broker)
Oliver Stansfield, Jonathan
Evans +44 (0) 20 7936 5200
IFC Advisory Limited
(Financial PR and IR)
Tim Metcalfe
Florence Chandler +44 (0) 20 3934 6630
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END
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