Edenville Energy Plc secures £1.468 million funding and reshuffles board

LONDON, UK: Edenville Energy Plc (AIM: EDL), an African focused mine operator and developer of the Rukwa Coal to Power Project in Tanzania, has announced that it has raised £1.468 million through direct subscriptions by two African focused mining investment groups, Q Global Commodities Group (QGC) and Gathoni Muchai Investments Limited (GMI), at 5.0 pence per share.

The capital raising will be undertaken in two tranches, comprising £575,000 under the Company’s existing share issuance authorities and a further £893,000 to be completed subject to shareholder approval at a General Meeting (GM) to be convened shortly.

QGC, one of South Africa’s leading independent commodity, mining, logistics and investment funds, will subscribe, via its wholly-owned subsidiary AUO Commercial Brokerage LLC, in total for £879,330 and, subject to shareholder approval at the GM, become the Company’s major shareholder with a 29.95% interest.

GMI, an East Africa based mining investment group, will subscribe in total for £588,670 and become a major shareholder of the Company, subject to shareholder approval at the GM, with a 20.05% interest.

Conditional upon shareholder approval at the GM, QGC and GMI will also each receive warrants allowing them to subscribe for, in total, 5,451,691 new ordinary shares in the Company at an exercise price of 25 pence each, exercisable until 25 May 2024.

The funds from the capital raising will be used by the Company to fund its ongoing working capital requirements and for due diligence costs associated with ongoing review work of potential new and strategically complimentary projects in Africa.

The Company also announced proposed changes to its Board of Directors, including the appointment of Jason Brewer as Executive Director of the Company, effective immediately. Mr Brewer is a director of GMI and the CEO of London-listed Marula Mining Plc, and is based in East Africa.

Mr Nicholas (Nick) von Schirnding, Non-Executive Chairman, intends to step down as a director of the Company with effect from the conclusion of the GM.

It is intended that QGC’s Quinton van der Burgh will join the Board of Directors as Director and Non-Executive Chairman following conclusion of the GM, subject to satisfactory completion of customary due diligence by the Company’s Nominated Adviser.

The Company’s CEO, Alistair Muir, commented: “We are delighted to welcome QGC and GMI as strategic investors and partners in Edenville. Their investment and support will enable us to continue to develop our Rukwa Coal Project and pursue other opportunities in the African mining sector. We are also pleased to have Jason Brewer join our Board as Executive Director, bringing his extensive experience and network in the region. We thank Nick von Schirnding for his valuable contribution to the Company and wish him well for the future. We look forward to working with Quinton van der Burgh as our new Non-Executive Chairman, subject to shareholder approval and due diligence.”

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