# Edenville Energy PLC Subscription to raise £1.25m

- Link: https://www.directorstalkinterviews.com/edenville-energy-plc-subscription-raise-1-25m/412737435
- Published: 2017-10-04T07:29:37+01:00
- Author: Giles Arbor

**Edenville Energy plc** (LON:EDL), the company developing a coal project in south
west Tanzania, has today announced a subscription to raise £1.25 million (before
expenses) through the issue of 208,333,333 new ordinary shares of 0.02 pence each
in the capital of the Company (“New Ordinary Shares”) at 0.6 pence per New Ordinary
Share to new and existing shareholders. In addition the Company has issued 104,166,667
warrants to the subscribers on the basis of one warrant for every two New Ordinary
Shares, exercisable at 0.8 pence per warrant at any time over the next 12 months(
the “Warrants” and each a “Warrant”; and together with the New Ordinary Shares, 
the “Subscription”). The Subscription was over subscribed.

The Company will apply the net proceeds of the Subscription to the completion of
construction work at, and for transport logistics for, the Company’s Rukwa Coal 
Project (the “Project”), working capital to fund the increase in production over
the next six months and, in the appropriate circumstances, initiating expansion 
options.

Management expects the net proceeds of the Subscription to take the Project through
to full production and the generation of positive cash flows.

Since the decision in January 2017 to proceed with development, the Project has 
taken only 8 months to construct. Opening of the mine has already exposed considerable
coal supplies in the upper seams. The plan is for initial production of 5,000 tonnes
of washed coal in October, ramping up to at least 10,000 tonnes per month by January
2018. A range of sizes of washed coal will be produced to allow the product to meet
specific end user requirements. Production of washed coal is expected to start later
this week.

> **Rufus Short, Edenville Energy Plc CEO commented:** “The net proceeds from this
> over subscribed placing are expected to take the Project to the point where it
> is cash flow positive, a fundamental advance for Edenville. We are in detailed
> negotiations with coal customers and believe we currently have sufficient interest
> to justify our plans. We look forward to Edenville becoming a significant coal
> producer in the East Africa region and I look forward to providing our shareholders
> with further updates in due course.”

**Admission and Total Voting Rights**

Application for admission to trading on AIM of the New Ordinary Shares on AIM will
be made to the London Stock Exchange (“Admission”) and Admission is expected to 
become effective on or around 9 October 2017.

Following Admission, the issued share capital of the Company will be 1,336,227,798
ordinary shares of 0.02 pence each. The New Ordinary Shares will rank pari passu
with the existing ordinary shares. In accordance with the Financial Conduct Authority’s
Disclosure and Transparency Rules, the Company hereby announces that, following 
Admission, it has 1,336,227,798 ordinary shares of 0.02p each in issue, each share
carrying the right to one vote. The Company does not hold any ordinary shares in
treasury. The above figure of 1,336,227,798 ordinary shares may be used by shareholders
in the Company as the denominator for the calculations by which they will determine
if they are required to notify their interest in, or a change to their interest 
in, the share capital of the Company under the Financial Conduct Authority’s Disclosure
and Transparency Rules.

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