Edenville Energy provides corporate update

Funding agreement with Lind Partners LLC: update

The company has provided an update regarding its outstanding funding agreement with Lind Partners LLC, that was first announced on 6 November 2018 (the funding agreement).

As announced on 6 October 2020, Lind requested Edenville repay the total outstanding balance of the funding agreement, being US$580 000, by 30 November 2020. The company has since been engaged in a constructive dialogue with Lind regarding the repayment terms of the funding agreement and is pleased to report the revised repayment schedule has been agreed as follows:

• The company will pay Lind US$116 000 in cash, being 20% of the outstanding debt, by 31 January 2021.
• The remainder, being US$464 000, will be repaid in monthly instalments of US$50 000 starting from the end of April 2021.
• The monthly instalments may be paid in cash or via the issuance of shares by mutual agreement.
• No further interest or charges will be applied to the US$580 000 headline figure.

Following settlement of the placing the company will have sufficient capital to meet its outstanding obligations to Lind. The company’s cash position is expected to be further strengthened by increased production and sales of washed coal from its flagship Rukwa mine in Tanzania during the course of 2021.

Oversubscribed £900 000 placing

The company has conditionally raised £900 000 (before expenses) by way of a placing of 3 600 000 new ordinary shares of 1 p each in the company (ordinary shares) at a placing price of 25 p per ordinary share (the placing shares) (the placing price) with new and existing shareholders through Brandon Hill Capital Ltd (the placing).

Edenville’s three largest shareholder groups (representing approximately 50% of the shares currently in issue) have subscribed for an aggregate of £250 000 in the placing. In addition, specialist mining investor RAB Capital, has subscribed for £300 000 in the placing and will own 10.2% of the enlarged issued share capital of the company following the admission of the placing shares to trading on AIM (admission).

Significant shareholder participation

Brandon Hill, including Neal Griffith and Oliver Stansfield, who currently hold 1 717 248 ordinary shares representing 21.08% of the company’s issued share capital, have agreed to subscribe for, in aggregate, 280 000 placing shares representing a cash subscription of £70 000. Following admission, the Brandon Hill Group’s revised holding of 1 997 248 ordinary shares will represent 17% of the company’s enlarged share capital.

The Brandon Hill Group have been granted warrants over 180 000 ordinary shares as a result of the placing (the broker warrants). The Broker Warrants have a 3 year life and an exercise price of 25 p per ordinary share.

Pitchcroft Capital Ltd and its executives, namely Alexander Fullard, William Orgee and David Thomas, who currently hold 1 218 327 ordinary shares representing 14.9% of the company’s issued share capital, have agreed to subscribe for, in aggregate, 360 000 placing shares representing a cash subscription of £90 000. Following admission, the Pitchcroft Group’s revised holding of 1 578 327 ordinary shares will represent 13.4% of the company’s enlarged share capital.

John Story, who currently holds 1 019 161 ordinary shares representing 12.5% of the company’s issued share capital, has agreed to subscribe for 360 000 placing shares representing a cash subscription of £90 000. Following admission, John Story’s revised holding of 1 379 161 ordinary shares will represent 11.7% of the company’s enlarged share capital.

Operational update

The company now expects to hand over operations at Rukwa to its strategic partner Infrastructure and Logistics Tanzania Ltd (ILTL) in February 2021, pursuant to the terms of the previously announced Coal Mining Agreement (CMA) between the two parties.

The company acknowledges this has taken longer than previously envisaged, with timing impacted by both the global COVID-19 pandemic and the Tanzanian general elections, which took place on 28 October 2020. The election, for both President and members of the National Assembly, created an administrative vacuum, with a number of relevant Ministerial positions only being appointed in December 2020. As previously outlined, this resulted in a number of logistical problems for ILTL, including the securing of work permits.

Read the article online at: https://www.worldcoal.com/coal/18012021/edenville-energy-provides-corporate-update/