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Edenville Energy signs Rukwa sales and marketing deal
26th Aug 2020 08:07
(Sharecast News) - Edenville Energy has signed a sales and marketing agreement for its Rukwa coal project in Tanzania with MarTek Global of Dubai.
Under the four-year deal MarTek will be an anchor tenant of Rukwa responsible for 3,000 tonnes of washed coal per month, increasing to 5,000 tonnes per month over the first year.
The AIM-traded company said the purchase price is the highest it has achieved to date, providing a healthy margin on coal sold. Edenville and MarTek will share marketing and sales responsibilities for sales over the anchor tenancy.
MarTek will have exclusive rights to market Rukwa coal in international markets at the agreed sales price with transport costs added.
Edenville said the deal complements a recent coal mining agreement with Infrastructure and Logistics Tanzania, a sister company of MarTek with the same principal shareholder. ILTL also agreed to lend Edenville $1m (£761,000) in July. Despatches of coal from Rukwa have started after the arrival of trucks, Edenville said.
Chief Executive Alistair Muir said: "We believe these agreements will collectively address the previous challenges, particularly in mining, processing and sales, that Edenville has experienced in recent years. Whilst concluding all three agreements has taken longer than envisaged as a result of the Covid-19 pandemic, we are excited to have now reached this point."
Edenville shares rose sharply in early trading but were down 5% to 0.048p at 09:21 BST.
Under the four-year deal MarTek will be an anchor tenant of Rukwa responsible for 3,000 tonnes of washed coal per month, increasing to 5,000 tonnes per month over the first year.
The AIM-traded company said the purchase price is the highest it has achieved to date, providing a healthy margin on coal sold. Edenville and MarTek will share marketing and sales responsibilities for sales over the anchor tenancy.
MarTek will have exclusive rights to market Rukwa coal in international markets at the agreed sales price with transport costs added.
Edenville said the deal complements a recent coal mining agreement with Infrastructure and Logistics Tanzania, a sister company of MarTek with the same principal shareholder. ILTL also agreed to lend Edenville $1m (£761,000) in July. Despatches of coal from Rukwa have started after the arrival of trucks, Edenville said.
Chief Executive Alistair Muir said: "We believe these agreements will collectively address the previous challenges, particularly in mining, processing and sales, that Edenville has experienced in recent years. Whilst concluding all three agreements has taken longer than envisaged as a result of the Covid-19 pandemic, we are excited to have now reached this point."
Edenville shares rose sharply in early trading but were down 5% to 0.048p at 09:21 BST.