Edenville Energy PLC Coal Offtake Agreement (1285T)
October 10 2017 - 1:00AM
UK Regulatory
TIDMEDL
RNS Number : 1285T
Edenville Energy PLC
10 October 2017
10 October 2017
EDENVILLE ENERGY PLC
("Edenville" or the "Company")
Coal Offtake Agreement
Edenville Energy plc (AIM:EDL), the company developing a coal
project in southwest Tanzania, is pleased to announce that it has
entered into a Coal Offtake Agreement (the "Agreement") with
Riftcot Limited ("Riftcot").
Riftcot is a coal and commodities trader based in Kenya, with
operations across Africa. It is a leading supplier of coal to the
East Africa market. More information on Riftcot may be found at
www.riftcot.com.
The Company recently started treating coal through its wash
plant and once up to full production, currently anticipated to be
in January 2018, and utilising the current plant and equipment
levels, the Company anticipates production volumes of at least
10,000 tonnes of coal per month.
Key terms of the Agreement:
The Agreement is for Riftcot to purchase, at a recognised
commercial market price, up to 75 per cent of the Company's Rukwa
Coal Project's yearly production and will run for an initial term
of five years commencing in October 2017. Pursuant to the
Agreement, Riftcot will receive an arrangement fee for each
delivery of coal to cover marketing and provision of transport.
General supply terms of the Agreement include Edenville
supplying a specific product to meet the needs of Riftcot's end
users, with Riftcot purchasing the coal at the minegate and in the
majority of cases transporting it to the end user.
Importantly, the Agreement allows major industrial groups in the
East Africa Region, including Tanzania, to be supplied with
Edenville's coal through Riftcot's established marketing and
logistical framework. It is the Company's belief that it will
benefit from the commercial and logistical experience Riftcot
brings to the operation and similarly Riftcot will be able to
access the only washed coal product currently available in Tanzania
and one of very few in East Africa as a whole.
The Agreement is for commercial production and external sales
from the Company's Rukwa Coal Project and does not include the
supply of any coal to the planned mine mouth power plant at Rukwa,
the Company's "Rukwa Coal to Power Project".
Rufus Short, CEO of Edenville commented: "The signing of the
Agreement with Riftcot is another significant step forward for the
Company. We look forward to working alongside Riftcot to build
Edenville's name into a recognised coal brand in East Africa.
"We see this is an opportunity to leverage Riftcot's trading
platform and experience with Edenville's newly opened project which
will produce washed coal for the East African market. By committing
75% of our production we are able to give volume to Riftcot's
supply contracts whilst also having some product in reserve to
supply other clients with their individual requirements.
"This is a period of rapid progress for Edenville and we look
forward to updating the market as the project progresses."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
For further information please contact:
Edenville Energy Plc
Jeff Malaihollo - Chairman +44 (0) 20 7652
Rufus Short - CEO 9788
Northland Capital Partners Limited
(Nominated Adviser)
Gerry Beaney
David Hignell +44 (0) 20 3861
Jamie Spotswood 6625
Optiva Securities Limited
(Broker)
Jeremy King +44 (0) 20 3137
Graeme Dickson 1902
IFC Advisory
(Financial PR and IR)
Tim Metcalfe
Graham Herring +44 (0) 20 3053
Heather Armstrong 8671
This information is provided by RNS
The company news service from the London Stock Exchange
END
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