# Edenville Energy encouraged by progress made

- Link: https://www.directorstalkinterviews.com/edenville-energy-encouraged-by-progress-made/412806686
- Published: 2020-02-27T07:21:12+00:00
- Author: Giles Arbor

**Edenville Energy Plc** (LON:EDL), the AIM quoted company developing the Rukwa 
coal project in southwest Tanzania, has today provided an update regarding mining
operations at Rukwa and the status of discussions with a potential strategic partner
for the Project.

**Operational Update**

Following the receipt of gross proceeds from the £700,000 capital raise, announced
on 23 January 2020, progress has been made at the Project site, including:

 * Reinstatement of an on-site operational advisor with extensive coal experience
   and historic involvement in the Project;
 * A detailed review and assessment of the wash plant has been completed with minor
   plant modifications being made. The wash plant is now operating again and continuous
   production is targeted for early March 2020;
 * Critical spares including new belts have been ordered which are expected to reduce
   any future downtime;
 * A stockpile of approximately 6,000 tonnes of unwashed run of mine (“ROM”) coal,
   which was mined from the southern pit at Rukwa,has been established adjacent 
   to the wash plant; and
 * The region is experiencing one of its wettest “rainy” seasons in many years. 
   Accordingly, as the Directors believe that all economic coal has now been recovered
   from the southern pit, equipment will shortly be relocated to the northern pit
   and mining and hauling activities will be undertaken during periods of dryer 
   weather. Based on the Company’s previous experiences, the rainy season is expected
   to end in late April.

Update Re Potential Strategic Partner

On the 11 December 2019 the Company announced it was in discussions with a potential
strategic partner for the Project. The Company confirms that these discussions are
progressing and a non-binding heads of terms has been agreed with the Strategic 
Partner covering a potential asset-level loan, a potential coal mining agreement
and a potential coal marketing agreement. The Strategic Partner recently visited
the Project and is now conducting due diligence on Edenville’s operations. Whilst
there is no guarantee that this period of due diligence will lead to a successful
outcome for the Company, the Board is encouraged by the progress that has been made
to date and looks forward to providing further updates regarding the Strategic Partner
as appropriate.

> **Alistair Muir, CEO of Edenville Energy, commented: **
> “We are encouraged by the progress we have made since the receipt of funds, focusing
> firstly on re-establishing the workforce and secondly making essential modifications
> to the wash plant, including the delivery of a critical spares inventory and establishing
> the interim ROM coal stockpile. We intend to re-establish continuous production
> at Rukwa, as the weather conditions allow, and look forward to providing further
> updates regarding progress as appropriate.”

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