Dar es Salaam. Rukwa-based Edenville Energy has entered into a conditional $2.75 million convertible funding agreement with an entity managed by Lind Partners.
The company, which is developing the Rukwa coal project in south-west Tanzania, said in a statement that it will use the money as working capital and for expansion purposes.
Under the terms of the agreement, the company said will receive an immediate $750,000 loan that will be used to buy the second loader to load the pre-screen plant and coal delivery lorries and a second excavator to open up the new mining area to the north.
The company also said the fund will also be used for the provision of further on-site lorries to enable a 24-hour operation.
“A further $2-million may be drawn down by Edenville, thereafter, subject to a mutual agreement between the company and Lind,” Edenville chief executive officer, Rufus Short said in a statement issued on Tuesday.
“We are pleased to have secured this funding, which will allow us to expand our coal production activities and take further advantage of the current demand for our coal,” he said.
He added: “We have explored a number of funding options and we believe that the structure of the convertible agreement will provide the company with the appropriate amount of flexibility to allow us to accelerate our growth strategy,”. (Mining weekly)