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Edenville Energy plans placing to enhance mining operations
Edenville Energy on Friday announced that it intends to raise £740,000 to fund its mining activity in Tanzania through a placing of 211.4m new shares at 0.35 pence each to new and existing shareholders.
According to the AIM-traded thermal coal developer, the funds will go towards increasing production at the Rukwa coal power plant from the current rate of 4,000 tonnes of coal per month to meet current and future orders.
Rufus Short, chief executive of Edenville's, said: "The placing will enable us to both expand our mining and processing operations, as we seek to maximise long-term shareholder value."
The remaining proceeds not used for the expansion and enhancement of mining operations will contribute to general working capital purposes.
"I am pleased with the support that has been shown by investors in the Placing and I look forward to providing Edenville's shareholders with further updates as we look to increase production rates throughout 2018, in order to fulfil orders from existing and potential customers," said Short.
As of 1634 BST, Edenville Energy's shares were down 16.67% at 0.43p.