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Edenville relinquishes non-core uranium licence

By BFN News | 08:57 AM | Monday 01 December, 2014


African coal development company Edenville Energy will take a £1.2m hit after deciding to relinquish PL5420, one of its non-core uranium licences. The licence was acquired for shares at the time of the company's admission to AIM following its acquisition of Edenville International Ltd in 2010. Relinquishment of this licence will reduce the company's work commitments over the next 12 months by approximately US$180,000. This decision will allow Edenville to continue its cash management program and direct capital to the Rukwa coal projects which the Board believes represents the best value for shareholders. The company said: "As a result of the decision to relinquish PL5420, an impairment charge is expected to be made to the statement of comprehensive income in the Company's next financial statements of approximately £1.2m. It is a non-cash impairment and is in accordance with the company's accounting policies and IFRS, as when the directors determine that it will discontinue exploration or development on a property or when exploration rights or permits expire or are relinquished, an impairment charge arises." Edenville says it is committed to making further progress at the Rukwa coal project in western Tanzania and believes that it can provide a credible energy source for the region. The Directors will identify and evaluate near term revenue opportunities to enable the achievement of its long term objective. At 8:57am: (LON:EDL) Edenville Energy PLC share price was -0.01p at 0.05p Story provided by StockMarketWire.com

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