Admission to AIM
March 29 2010 - 1:00AM
UK Regulatory
TIDMEDE
RNS Number : 2893J
Edenville Energy PLC
29 March 2010
29th March 2010
Edenville Energy Plc (AIM:EDE.L)
("Edenville" or the "Company")
ADMISSION TO AIM AND GBP1 MILLION PLACING
· Six key projects- prospective uranium and uranium/coal, Tanzania
· Exploration and development of coal for domestic sale and uranium for
export
· Matiri North and Matiri South licenses initial exploration focus
* Situated within Mtwara Development Corridor- Tanzania economic growth zone
* Exploration to begin Q2 2010
· Uranium exploration and production fully endorsed by Tanzania mining code
Edenville Energy Plc (formerly Gemstones of Africa Group Plc) the uranium and
coal explorer operating in Tanzania, today announces its admission to AIM
following the acquisition of Edenville International Limited (the
"Acquisition"), which constituted a reverse takeover for the purposes of the AIM
Rules for Companies and which was approved by the Company's shareholders at a
general meeting held on 26 March 2010. At the same meeting, the Company's
shareholders approved the change of the Company's name from Gemstones of Africa
Group Plc to Edenville Energy Plc. The Company has further announced today that
it has raised GBP1,000,000 (before expenses) by way of a placing of its ordinary
shares (the "Placing"). ZAI Corporate Finance Limited is acting as broker to the
Company and ZAI Corporate Finance Limited is acting as nominated adviser to the
Company.
Edenville, through its subsidiary Edenville International (Tanzania) Limited,
has interests in six prospecting licences in Tanzania. The geological settings
of these licences are considered to have the potential to host uranium
mineralisation, three of which also have potential to host coal deposits. Funds
from the Placing will be used to meet the costs of the corporate transaction and
to provide additional working capital for the Company and its subsidiaries. The
initial exploration focus will be the uranium and coal targets at the southern
licences of Matiri North and Matiri South. Site investigations will be
undertaken on the remaining licences. The Company will actively manage
geological exploration on the licences with planning and preparation for
field-based activities being conducted in April and May, the rainy season in
Tanzania. Geological prospecting is expected to commence in late Q2 of 2010.
Initial work will consist of a desk-top review involving the collection,
collation and re-interpretation of all available historical data, supplemented
by regional-scale geological reconnaissance mapping and sampling. This will
define the host geological units for mineralisation and allow for progressively
more focused and detailed exploration that will lead into a drilling campaign
and ultimately ore body delineation and subsequent mineral resource estimations.
In the southwest and within Dodoma regions where Edenville's licence areas are
located two nearby uranium projects are currently undergoing pre-feasibility and
feasibility level studies. To the north of the Matiri licences, the Ngaka
coalfield is currently being developed and undergoing a feasibility study.
The Matiri South Licence, Matiri North Licence and the Kyela-Rungwe Licence all
lie within the Mtwara Development Corridor, which is a Spatial Development
Initiative with the aim of creating an economic growth zone of trans-border
trade and investment, linking Malawi, Mozambique, Tanzania and Zambia. The main
objective of the Mtwara Development Corridor is to utilise the inherent economic
and growth potential of the area largely through mining and the exploitation of
natural resources. As a result, there are a considerable number of joint
initiatives with the Tanzanian government, particularly in the development of
coal resources.
Commenting today Simon Rollason, Executive Chairman, said; "I am delighted that
this transaction has been concluded to the satisfaction of our shareholders and
allows us to move the company forward. We have a highly prospective portfolio of
projects in a very exciting part of Africa. Our priority targets in Tanzania are
the Matiri North and South licenses where we hope to quickly identify and
delineate economic coal and uranium resources. Our strategy going forward is to
bring coal into production for a domestic Southern African market and we believe
our location in the Government supported Mtwara Development Corridor places us
in an ideal position to sell product within the region. Edenville shall also
look to develop uranium exports to international nuclear utilities companies.
Edenville will also continue evaluating other energy mineral properties. Our
exploration season is scheduled to begin by the end of H1 2010 and we intend to
efficiently recover data and return results to shareholders."
+----------------------------------------------+-------------------+
| For more information, please contact: | |
+----------------------------------------------+-------------------+
| Edenville | |
| sSs | |
+----------------------------------------------+-------------------+
| Simon Rollason/Rakesh Patel | +44 (0) 20 7099 |
| | 1940 |
+----------------------------------------------+-------------------+
| ZAI Corporate Finance Ltd | |
+----------------------------------------------+-------------------+
| Ray Zimmerman/ John Depasquale | +44 (0) 20 7060 |
| | 2220 |
+----------------------------------------------+-------------------+
| Threadneedle Communication (UK) | |
+----------------------------------------------+-------------------+
| Laurence Read/ Peter McCready | +44 (0) 20 |
| | 76539850 |
+----------------------------------------------+-------------------+
FURTHER INFORMATION
REVERSE TAKEOVER DETAILS
Gemstones of Africa Group acquired Edenville International Ltd, which, through
its 99.5 per cent. owned subsidiary, Edenville International (Tanzania) Limited
("Edenville Tanzania"), is the owner of six prospecting licences in Tanzania
with a particular focus on uranium and coal. The aggregate consideration for the
Acquisition is approximately GBP6.9 million satisfied by the issue and allotment
of an aggregate of 1,393,941,536 Ordinary Shares to the shareholders of
Edenville International Limited. The Acquisition is classified as a reverse
take-over pursuant to Rule 14 of the AIM Rules for Companies and has been
approved by the Company's shareholders at a general meeting held on 26 March
2010.
LICENSES
Matiri South Licence
Edenville Tanzania acquired the uranium and coal targeted Matiri South Licence
in November 2009. This prospecting licence covers an area of 76.65km2 which is
located in the Mbinga District of Tanzania, approximately 80km west of Songea in
the southwest of Tanzania, which itself is approximately 1200km from Dar es
Salaam and 600km from the Zambian border. Links to both Songea and Dar es Salaam
are provided by major tarmac roads. The Matiri South licence area is situated
southwest of the Matiri North licence area (described below). The Matiri South
Licence has been granted for all minerals other than building materials or
gemstones and is effective until 12 November 2012.
Matiri North Licence
Edenville Tanzania acquired the uranium and coal targeted Matiri North Licence
in November 2009. This prospecting licence covers an area of 28.50km2 which is
located in the Mbinga District of Tanzania, approximately 80km west of Songea in
the southwest of Tanzania. Matiri North is easily accessible from the village of
Kitai, located on the main Songea to Mbamba Bay gravel road. The road from Kitai
leads directly to the licence area and runs all the way through it. The Matiri
North licence area and is situated northwest of the Matiri South Licence. The
Matiri North Licence has been granted for all minerals other than building
materials or gemstones and is effective until 11 November 2012. The Matiri North
licence area is also prospective for so-called sandstone hosted uranium
deposits, which typically occur in medium to coarse-grained sandstones deposited
in a continental fluvial or marginal marine sedimentary environment, such as the
Karoo deposits that occur in the Matiri North licence area and represent a type
of deposit that is currently the focus of much interest in Tanzania.
Both the Matiri South and the Matiri North licence areas are currently
considered the most prospective areas with potential for the occurrence of
economic uranium mineralization as well as hosting coal. As mentioned above the
Matiri North licence area is within the favorable Karoo host rocks which are
present on both the Matiri South and Matiri North properties. In addition the
presence of the Ngaka Coalfield to the north west of the properties indicates
that there is further potential for coal mineralisation.
Kyela-Rungwe Licence
Edenville Tanzania acquired the uranium targeted Kyela-Rungwe Licence in
September 2009. Located in both the Kyela and Rungwe Districts of Tanzania,
which are approximately 90km south of Mbeya in the southwest of Tanzania, access
to the Kyela-Rungwe licence area is good, with a tarmac road from the large town
of Mbeya, located approximately 64km to the north, to Tukuyu from where a gravel
road leads south to the Kyela-Rungwe Licence. The Kyela-Rungwe licence area
covers approximately 102.70km2. The Kyela-Rungwe Licence has been granted for
all minerals other than building materials or gemstones and is effective until 5
May 2011. A review of the 1980's regional airborne geophysical survey shows a
radiometric anomaly covering most of the Kyela-Rungwe licence area. This
radiometric anomaly or feature may be the result of underlying Karoo-aged
sedimentary units that are observed outcropping at surface to the southwest of
the Kyela-Rungwe licence area host the Songwe and Kiwira Coalfield. This
suggests the potential for coal mineralisation within the Karoo-aged rocks, in
addition to the primary uranium exploration targets.
Ikungu Licence
Edenville Tanzania acquired the uranium targeted Ikungu Licence in September
2009. Located in the Singida District of Tanzania, approximately 240km northwest
of Dodoma, the capital city of Tanzania. Access to the Ikungu licence area is
accessed via a tarmac road that is currently being resurfaced leading from
Dodoma. The Ikungu licence area covers approximately 81.73km2.The Ikungu Licence
has been granted for all minerals other than building materials or gemstones and
is effective until 18 March 2012. There are calcrete-hosted deposits identified
to the south of the Ikunga licence area, namely Uranex NL's Manyoni Project,
which are comparable to those of Australia. The Manyoni Project comprises
uranium mineralisation as near surface secondary enrichment within a sequence of
unconsolidated sediments that are associated with several playa lakes. The
mineralisation is characterised by an upper schrockingerite zone approximately
one metre thick overlying a lower carnotite zone.
Mwitikila West Licence and Mwitikila East Licence
Edenville Tanzania acquired a 75 per cent. interest with an option to acquire
the remaining 25 per cent. in the uranium targeted Mwitikila West Licence and
the Mwitikila East Licence. These prospecting licences have been granted for all
minerals other than building materials or gemstones and are effective until 18
March 2012; they cover a continuous area of 308.49km2. Access to the Mwitikila
West and Mwitikila East Licence Areas is excellent; from Dodoma, to the west,
the Mwitikila West and Mwitikila East licence areas can be accessed via the main
Dodoma to Morogoro road from which there is a graded gravel road leading towards
Handali. The edge of the Mwitikila West licence area is reached after 10km and
the road runs directly though both the Mwitikila West and Mwitikila East licence
areas. Notably the railway line between Dodoma and Msagali also runs through
both these licence areas from the northwest to the southeast. Strong airborne
radiometric anomalies were identified by the 1980s regional airborne survey,
conducted by Geosurvey, which associated with favourable lithologies, indicates
the potential for both the Mwitikila East and West licence areas to host uranium
mineralisation.
Directors and Senior Management
Simon Rollason, BSc (Hons) Geology, MIMMM, FGS, Executive Chairman, Aged 43
Simon graduated from the University of the Witwatersrand, South Africa in 1990
with a B.Sc (Hons) degree in Geology. He has gained 20 years international
experience working in both mining and geological exploration. During this time,
Simon has worked in Africa, the Middle East, Central Asia and the Far East with
both multi-nationals and junior resources companies. Simon has worked on gold,
nickel, copper, base metals, uranium and gemstone projects, ranging from
grassroots to producing assets. He has been involved with and managed operations
that have varied from exploration and evaluation projects to successful
feasibility studies. Simon moved back to the UK in 2008 to take up the role of
Managing Director of Obtala Resources Plc, and was appointed to the Board of the
Company in June 2009. Simon is a Fellow of the Geological Society and a member
of the Institute of Materials, Minerals and Mining, the Society of Economic
Geologists and the Society of Mining, Metallurgy and Exploration.
Mark Pryor, BSc (Hons) Geology & Mineralogy, FGS, FSEG, Pr.Sci.Nat, Chief
Executive
Officer, Aged 50
Mark Pryor is an Independent Geological Consultant working with private mining
and exploration groups, based out of the United Kingdom and holds a B.Sc (Hons)
degree from the University of Aberdeen. He has 25 years of management experience
in advanced stage exploration and mine development projects worldwide. He is a
'Qualified Person' as defined by the Securities Commission and regularly submits
Independent Technical Reports for companies wishing to list on the Stock
Exchange as well as Independent Technical Reports and press releases for quoted
companies. Mark has worked for major and mid-tier mining companies and has many
contacts within the venture capital sector of the mining industry. Mark has
extensive global experience having worked in Mexico, EurAsia, China, Southern
Africa and South America, holding management positions in recognised companies
in the industry including Placer Dome, Minefinders, Monarch Resources and Anglo
American. Mark is an associate of SRK (UK) Ltd and is a Fellow of the Geological
Society, Society of Economic Geologists and is a registered Natural Scientist
(Pr. Sci. Nat).
Rakesh Patel, BA Economics, FCCA, CF, Finance Director, Aged 46
Rakesh Patel qualified as a chartered certified accountant in 1991. From 1992,
he led the corporate finance division of Gerald Edelman, chartered accountants,
dealing with acquisitions, disposals, mergers, private placings and stock market
flotations. Rakesh was involved in advising on the acquisition of Ryman the
Stationer and left the firm in 1996 to become group financial controller of
Chancerealm Limited, a group including Ryman Limited where he was involved in
the acquisition and integration of Contessa Ladieswear Limited. Rakesh returned
to Gerald Edelman in 1997 until leaving in March 2003 to join Adler Shine LLP,
chartered accountants, where he heads the firm's corporate finance division.
Rakesh has acted in over 30 transactions including companies quoted on AIM as
Reporting Accountant and has also acted as interim or part-time director to a
number of private and
public companies. He is currently chief executive officer of The Niche Group plc
and non-executive director of Deo Petroleum plc and Mountfield Group plc, which
are quoted on AIM. Rakesh will have responsibilities for the finance function of
the Company and its subsidiaries.
Sally Schofield, BEng (Hons) Industrial Geology, ACSM, FGS, MIMMM, Non-Executive
Director, Aged 38
Sally's career has seen her work in commercial, technical and operational
capacities in geographically and politically diverse regions including
Kazakhstan, Albania, Central America, Brazil and Chile. She gained early
exposure to the technical, corporate and investor relations functions of the
mining business before crossing sectors to work with RMC, now part of CEMEX, the
global building materials giant. Sally returned to mining in 2003 and became a
Director of AIM - listed Latitude Resources plc, a company with copper and gold
assets in Chile. As Chief Operating Officer of that company she relocated to
Santiago, Chile, in 2006 with direct responsibility for an exploration program
that developed a portfolio of exploration projects into a saleable asset. Sally
then worked for a natural resource focused fund identifying potential assets.
Sally currently holds the position of VP Investor Relations, European
Goldfields. Her business skills have been recognised by several external
parties, including Management Today, Courvoisier Future 500 and HM The Queen.
Sally graduated from the Camborne School of Mines with a First Class B. Eng
(Hons) Industrial Geology in 1995, is a Fellow of the Geological Society (FGS)
and a professional member of IOM3 (MIMMM).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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