Edenville Energy Plc (LON:EDL), the AIM quoted company operating the Rukwa Coal Project in southwest Tanzania has provided an operational and corporate update.
Operational Update
The Rukwa mine continues to fulfil its pre-purchase orders.
The Company still expects to hand over the operations at Rukwa to its strategic partner Infrastructure and Logistics Tanzania Ltd shortly, pursuant to the terms of the previously announced Coal Mining Agreement between the two parties.
Both Edenville and ILTL had expected this transition to take place before the end of November 2020. However, as a result of ongoing administrative issues relating to work permits between the Tanzanian Government and ILTL, principally as a result of a backlog caused by Covid-19, the transition is delayed. Both parties expect these administrative issues to be resolved in the short term and a further announcement regarding the new commencement date will be made as soon as it has been confirmed.
Funding Agreement with Lind Partners LLC – Update
The Company also provides an update regarding its outstanding funding agreement with Lind Partners LLC (“Lind”), that was first announced on 6 November 2018 and further detailed in the Company’s announcements of 29 April 2019, 23 January 2020, 7 April 2020 and 6 October 2020 (the “Funding Agreement”).
As announced on 6 October 2020, Lind initially requested that Edenville repay the total outstanding balance of the Funding Agreement, which is currently US$580,000 by 30 November 2020. The Company subsequently entered into discussions with Lind regarding the repayment terms of the Funding Agreement.
The Directors are confident that mutually agreeable terms can be agreed with Lind regarding the Funding Agreement, however, at this current time it is premature to reach any conclusions. There are no assurances that these discussions will result in a favourable outcome for Edenville.
Should Edenville Energy be unable to agree mutually agreeable terms with Lind, there may be material uncertainty regarding the Company’s ability to continue as a going concern unless the Company raises further capital. The Company has a number of supportive significant shareholders whom the Directors believe would continue to support the Company in such event. In the near term, the Directors are working towards reaching a conclusion with Lind with regards to the Funding Agreement.
A further announcement regarding the status of the Funding Agreement will be made as soon as practicable.
Notice of 2020 Annual General Meeting
Notice of the Company’s forthcoming Annual General Meeting will be announced imminently, along with information regarding how shareholders can request a hard copy of the Annual Report for the year ended 31 December 2019.
