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Edenville Energy said its subsidiary Edenville International entered into a four-year coal mining agreement with Infrastructure and Logistics Tanzania on 5 June.
Under the agreement, Infrastructure and Logistics Tanzania (ILTL) would provide an anchor tenancy at the company's Rukwa coal project by initially purchasing 3,000 tonnes of washed coal per month at standard market rates, before increasing this to 5,000 tonnes a month over a 12 month period.
The signing of the agreement followed the completion of extensive negotiation with ILTL and was the culmination of discussions that began last year.
The agreement was expected to represent the first stage of a wider strategic partnership with ILTL which would also address other aspects including an underpinning of sales, marketing, offtake and an asset level loan.
The agreement, which would become effective once business activity can return to normal in Tanzania following the pandemic, had a contract term of four years and would be automatically be renewed for a further period of four, years unless terminated by either party.
At 8:42am: (LON:EDEN) Eden Research plc share price was 0p at 8p