Edenville Energy PLC New Coal Mining Agreement Signed (6444A)
03 Febrero 2022 - 07:20AM
UK Regulatory
TIDMEDL
RNS Number : 6444A
Edenville Energy PLC
03 February 2022
3 February 2022
Edenville Energy Plc
("Edenville" or the "Company")
New Coal Mining Agreement Signed
Edenville Energy Plc (AIM: EDL) is pleased to announce its
subsidiary Edenville International (Tanzania) Limited ("EITL") has
entered into a contract with Nextgen Coalmine Limited ("Nextgen" or
the "Contractor") for the operation of the Company's Rukwa Coal
Project ("Rukwa" or the "Project") in Tanzania (the "Agreement").
The Agreement is for an initial period of one year from 1 February
2022, and supersedes the Coal Mining Agreement with Infrastructure
and Logistics Tanzania Limited ("ILTL") and the Sales and Marketing
Agreement with MarTek Global FZ-LLC, announced by the Company on 8
June 2020 and 26 August 2020 respectively, which have been
terminated by Edenville.
Under the Agreement the Contractor will pay EITL a royalty of
US$10 per tonne of washed coal sold and a royalty of US$5 per tonne
of any coal fines sold. The Contractor intends to utilise existing
EITL employees and equipment where appropriate, as well its own, to
increase production, sales and ultimately the profitability of
operations. The Contractor will be responsible for taking over
operations with immediate effect to improve efficiency, however
Project ownership will remain with EITL. The Contractor will also
be responsible for all operational and maintenance costs relating
to the mining and production of washed coal at Rukwa, as well as
all taxes, duties and royalties related to coal sales and the
licence extension costs.
About Nextgen
Nextgen is a newly formed special purpose vehicle established
specifically for this venture. The principals behind Nextgen are
the founders and owners of Tuxford Haulage Limited, a specialist
logistics and haulage firm based in Tanzania that has been in
operation since 2017.
Rukwa Production Update
In December 2021, approximately 803 tonnes of washed coal was
processed through the Company's wash plant. This decrease from the
November 2021 figure of 1,125 tonnes reflected shutdowns over the
Christmas and New Year holiday period. There was limited production
of washed coal in January 2022 as the Company focused on the
expected handover to Nextgen and concluding the Agreement. With
Nextgen having now taken over operatorship, the Company expects
production to increase.
Alistair Muir, CEO of Edenville, commented: "We are very pleased
to have entered into this agreement with Nextgen, whose owners have
extensive experience in the coal sector and a network of
relationships throughout Tanzania and surrounding countries. With
Nextgen absorbing the costs of production, Edenville's Tanzanian
operations will now become profitable immediately with respect to
any coal produced and sold from Rukwa. It is expected that Nextgen
will originate new customers of Rukwa coal, especially given the
increasing demand both within Tanzania and the surrounding regions,
to compliment the established existing and potential order
book.
"With the operational side of Rukwa in safe hands, the Company
continues to review additional investment and operational
opportunities, following its recapitalisation last year."
For further information please contact:
Edenville Energy Plc
Jeff Malaihollo - Chairman +44 (0) 20 3934
Alistair Muir - CEO 6630
Strand Hanson Limited
(Financial and Nominated Adviser)
James Harris +44 (0) 02 7409
Rory Murphy 3494
Tavira Securities Limited +44 (0) 20 7100
(Broker) 5100
Oliver Stansfield
Jonathan Evans
IFC Advisory Limited
(Financial PR and IR)
Tim Metcalfe +44 (0) 20 3934
Florence Chandler 6630
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 as it forms part of
United Kingdom domestic law by virtue of the European Union
(Withdrawal) Act 2018.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
AGRBKNBDNBKDCBK
(END) Dow Jones Newswires
February 03, 2022 08:20 ET (13:20 GMT)
Edenville Energy (LSE:EDL)
Gráfica de Acción Histórica
De Feb 2024 a Mar 2024
Edenville Energy (LSE:EDL)
Gráfica de Acción Histórica
De Mar 2023 a Mar 2024