Edenville Energy plc (AIM:EDL) is pleased to provide an update on its Rukwa Coal Project in western Tanzania.
· Consultant mining engineer and process engineer appointed.
· Letters of Intent received from several potential coal customers; and
· Wash plant secured and in the process of being containerised for shipment;
Consultant Mining Engineer and Process Engineer Appointed
A consultant mining engineer, with over 20 years of experience in the resources industry, including 10 years in Africa, has been appointed to oversee the mining development and efficient operation of the project. He comes from a strong background of putting mines into production, developing and operating mines and materials processing operations in Africa, Australia, Europe and the UK.
Work has subsequently already begun on mining equipment selection, recruitment of operations personnel and planning of mining development.
To compliment the mining engineer, the Company has also appointed a consultant coal processing engineer to oversee the construction and operation of the wash plant including importantly the training of local Tanzanians. He is a degree qualified electrical engineer and has 12 years of experience in the construction and operation of coal washing plants. He is also experienced in operating coal laboratory facilities as well as holding qualifications for the use of heavy mobile plant.
Letters of intent from several potential customers
Letters of intent ("LOI") and expressions of interest have been received from several parties who intend to purchase coal from the operating mine on a long-term basis. Subsequently, the Company is moving the project forward as quickly as possible to facilitate production to meet this demand.
At present no assurances can be given that these LOIs and expressions of interest will result in formal sales contracts, although the Company is conservatively planning for firm orders that will result in initial sales in the region of 5,000 to 8,000 tonnes per month, with the ability to increase production as appropriate. We are also working with interested parties to determine the product quality characteristics they require.
Wash plant secured and in the process of being containerised for shipment
As announced on 23 February 2017, a coal washing plant has been secured and is currently being prepared for shipment to Tanzania. Assuming the resolutions are passed at the Company's forthcoming General Meeting on 17 March 2017, we expect the plant to be readied for shipping during March and en route to Tanzania by early April, subject to available transportation and export requirements being met. Once the plant arrives on site the estimated time for construction is six to eight weeks and commissioning will take place immediately following that. In the meantime we have access to a local, smaller scale, crusher to process our coal.
Rufus Short CEO of Edenville Energy commented: "I am very pleased to report on the recent progress in several areas at our Rukwa Coal Project. We have interest in our coal from several parties which underpins our production plans and site development will continue to gather pace as equipment arrives on site and the preparation for the wash plant is advanced.
"Additionally the newly recruited mining and processing professionals mean that we have the right people to ensure our mining operations are appropriately developed and exploited."
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 7652 9788
Northland Capital Partners Limited
+44 (0) 20 3861 6625
Optiva Securities Limited
+44 (0) 20 3137 1902
(Financial PR and IR)
+44 (0) 20 3053 8671