Edenville Energy PLC Rukwa Coal Project - Update (6111F)
19 May 2017 - 4:00PM
UK Regulatory
TIDMEDL
RNS Number : 6111F
Edenville Energy PLC
19 May 2017
19 May 2017
EDENVILLE ENERGY PLC
("Edenville" or the "Company")
Rukwa Coal Project - Update
Edenville Energy plc (AIM:EDL), is pleased to provide an update
on its Rukwa Coal Project in western Tanzania (the "Project").
Key Points
-- Letter of Intent signed with a customer to supply coal
-- Key mining equipment purchased
-- Tanzanian contractor appointed
Coal Customers
The Company is please to announce it has signed a Letter of
Intent ("LOI") with a customer to supply coal. Initially this is
expected to be 1,000 tonnes per month rising to a potential 7,000
tonnes per month supply to this customer as the operation
expands.
The LOI is the first stage of completing a formal coal supply
agreement prior to first deliveries. Deliveries are expected to
start in July 2017, initially with the Company supplying screened
coal and, once the coal wash plant is operational, the customer
requirements will be assessed to determine the most suitable
product to supply. The board can give no assurance at this stage
that a formal agreement will be concluded.
In addition to the above, the Company is working on several
other agreements that would provide significantly more additional
sales. We expect to progress these over the coming weeks as the
operation develops.
Mining
The Company is moving ahead with the establishment of the mining
fleet at site with the purchase of critical path equipment and the
engagement of a local Tanzanian contractor to supply support
equipment and services.
As part of this the Company has completed the purchase of two
key machines to carry out loading at the mine site. These are a
Volvo EC300D excavator and a Volvo L120G loader. It is planned the
excavator will carry out in pit mining, whilst the loader will
predominantly manage the stockpile area.
To supplement this equipment we have engaged a Tanzanian
contractor to provide haulage and support services to the operation
with their fleet of mining equipment.
Rufus Short, CEO of Edenville commented: "I am very pleased we
have been able to reach agreement with a customer with a view to
providing long term supply to fulfil their requirements. Over 100
tonnes of coal have already been shipped to them for trial purposes
and we are confident that we can deliver a product that will fit
their needs. In parallel we are working on several other supply
agreements to provide both early stage and washed coal to customers
in Tanzania and the wider region.
"After reviewing proposals from several contractors we settled
on a group that have an existing presence in the Rukwa Region. I
believe their local knowledge and past experience in operating in
the area will add value to the Project, the management of which
will remain under Edenville's control. All our people, whether they
be employees, consultants or contractors just want to push on with
the Project to make it a success. We have had very positive support
from local and national government and I am confident this Project
can bring a wide range of benefits to the local population and
economy of Tanzania. I look forward to providing further updates
over the coming weeks."
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 +44 (0) 20 7652
Rufus Short - CEO 9788
Northland Capital Partners Limited
(Nominated Adviser)
Gerry Beaney +44 (0) 20 3861
David Hignell 6625
Optiva Securities Limited
(Broker)
Jeremy King +44 (0) 20 3137
Graeme Dickson 1902
IFC Advisory
(Financial PR and IR)
Tim Metcalfe
Graham Herring
Heather Armstrong +44 (0) 20 3053
Miles Nolan 8671
This information is provided by RNS
The company news service from the London Stock Exchange
END
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