Edenville Energy relinquishes uranium prospecting licence

Edenville Energy announced on Friday that as it was now concentrating on advancing activities at its Rukwa coal deposit, its exploration prospecting licence for uranium had been relinquished.

The AIM-traded firm said the Matiri South licence PL6147/2009 covered 28.5 sq km and was originally acquired for shares at the time of the company's admission to AIM in 2010.

After initial investigation the licence area appeared to contain little indication of economic mineralisation and no further work had subsequently been undertaken.

“Relinquishment of this licence will reduce the company's work and licence fee commitments over the next 12 months by approximately $32,000 and allow technical and financial resources to be focused on the development of the Rukwa Coal-to-Power Project and the commencement of mining operations,” the board explained in a statement.

“As a result of the decision to relinquish this licence, an impairment charge, in accordance with the company's accounting policies and IFRS, is expected to be made to the statement of comprehensive income in the company's financial statements for the year ended 31 December 2016.”

Edenville said it will announce its annual financial results for the year to 31 December at the end of May.