LONDON (ShareCast) - Edenville Energy’s shares tumbled after the African coal exploration and development company announced it had raised one million pounds through the placement of shares.

The company sold more than 1.4m new ordinary shares at a price of 0.07p to fund the Rukwa coal-to-power project.

The project includes a proposed 100 megawatt plus power station. Edenville will undertake technical work, including large-scale bulk sampling and metallurgical tests for wash plant and power plant design.

A detailed airborne topographical survey will also be carried out to feed into the pre-feasibility study.

Chairman Sally Schofield said: "We are delighted with the successful completion of a share placing for £1 million; this demonstrates our ability to raise funds in difficult markets and shows significant confidence and support for the company at this critical point in its development."

Shares dropped 40% to 0.09p at 13:55 on Friday.

RD

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE