Edenville Energy Plc (AIM: EDL) provides an update on its Rukwa Coal Project (“Rukwa”) in Tanzania.
As previously announced, the Company has been focused on stockpiling run of mine coal to mitigate, as far as practicable, impact from the Tanzanian rainy season. A substantial stockpile of run of mine (“ROM”) coal was accumulated, but this stockpiled ROM coal has proven difficult to wash due to its moisture content. The production of washed coal is therefore expected to be reduced for as long as the rains continue, which could be for several more months.
The Company continues to explore further opportunities in the Tanzanian coal market as they are presented, with efforts being increased given the robustness of the global coal markets and opportunities currently available within Tanzania.
Tanzanian Mining Commission
Edenville is in discussions with the Mining Commission in Tanzania (the “Commission”) in relation to its Rukwa mining licence, having been advised by the Commission that the Company had historically failed to perform certain tasks required under its licence and that the licence could technically be in default of these requirements.
Edenville’s senior management have held constructive discussions in Tanzania with the Commission and both parties have agreed to work on resolving any outstanding issues, whilst also ensuring the Company is in full compliance with local regulations.
The Company is continuing to run the day to day operations at Rukwa while continuing discussions with the Commission and looks forward to remedying the outstanding matters concerning the licence in consultation with the Commission on a timely basis.
Update on Dispute with Upendo Group Ltd
Since the Company’s announcement on 9 February 2023 there have been no further developments in the Courts regarding Upendo Group Ltd.’s claim. Based on legal advice received, the Company remains confident with respect to its position and a further update will be provided in due course.
As previously reported, the Company reached agreement with Envirom Group AS (“Envirom”) for certain costs to be recouped following an earlier aborted acquisition process. The Company has yet to receive any funds. The Company has therefore issued a statutory demand to Envirom in order to seek to obtain recovery of the debt.
For the period from 1 January 2023 to 27 March 2023 the Company has sold 948 tonnes of washed coal generating revenue of approximately £34,500.
Commenting, Noel Lyons CEO of Edenville said: “We remain focused on resolving any legacy issues at Rukwa and remain confident that the challenges can be overcome. However, in conjunction with this, we are also focused on securing potential new and exciting coal opportunities.”
For further information please contact:
Edenville Energy Plc
Nick Von Schirnding – Chairman | Noel Lyons – CEO
Via IFC Advisory
Strand Hanson Limited (Financial and Nominated Adviser)
James Harris | Richard Johnson
+44 (0) 20 7409 3494
Tavira Securities Limited (Broker)
Oliver Stansfield | Jonathan Evans
+44 (0) 20 7100 5100
IFC Advisory Limited (Financial PR and IR)
Tim Metcalfe | Florence Chandler
+44 (0) 20 3934 6630