Research Report: Edenville Energy

Edenville Energy

Edenville Energy

Edenville Energy (Edenville) is an AIM natural resources company focused on the development of its core asset, the Rukwa coal to power project in western Tanzania. In its Interim Results statement released in September 2017, the company noted that the recent changes in the country's Mining Law had created some uncertainties within the mining sector and was 'closely monitoring developments with it yet to experience any direct impact on its operations.'. Whilst Edenville represents a speculative investment opportunity and hence is not without risk, it has been able to demonstrate progress during 2017. Indeed, the company announced last week that it was ready to start producing washed coal. On 4 October 2017, Edenville announced that it had raised £1.25m (gross) in an oversubscribed subscription at 0.6p together with warrants. The net proceeds will be used for the completion of construction work at, and for transport logistics at Rukwa, working capital and as appropriate expansion options with the proceeds also taking the project through to full production and the generation of positive cashflows. Application will be made for the subscription shares to be admitted to trading on AIM and it is expected that dealings in these new shares will commence on or around 9 October 2017.