Edenville Energy raises £300,000 in placing

Tanzanian-focussed coal miner Edenville Energy has raised £300,000 by way of a placing of 600m new ordinary shares at a price of 0.05p each.

Edenville will use the proceeds of the placing to supplement its working capital following the decision to accelerate mining and processing operations by acquiring new trucks and increasing shifts at its wash plant as part of an effort to increase overall productivity.

Brandon Hill, the company's joint-broker, agreed to subscribe for a total of 300m placing shares, representing a cash subscription of £150,000. The remaining 300m shares were snapped up by existing investor Pitchcroft Capital and its executives.

The AIM-listed group also told investors on Friday that it had made "important strides" since its recapitalisation back in April, including the completion of upgrades to its washing plant and the opening up of its Northern Mining Area, which proved to hold both thicker seams and higher energy values than previously mined areas.

Chief executive Rufus Short said: "Edenville has already witnessed an increase in productivity since this recent change in the business.

"Accordingly, with this modest working capital raise, the directors believe the company remains on track to become cash-flow positive from operations during H1 2020."

However, Edenville did note that these "positive developments" were partially offset by delays experienced with respect to trucks and other equipment provided by mining contractors, thereby reducing mining capacity.

As of 0820 BST, Edenville shares had dipped 1.82% to 0.054p.