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Tlou Energy receives RFP to develop 100MW CBM

Tlou Energy has announced that it has received a detailed Request for Proposal (“RFP”) from the Government of Botswana to develop up to 100MW of coal bed methane (CBM) power in Botswana.


The energy company, in a press release, says this indicates the government’s commitment to facilitate the development of a CBM industry in Botswana. The proposed Government power purchase agreement (“PPA”) will assist in fast‐tracking the development of the gas industry in the country and creates a new market for Tlou’s independently‐certified gas reserves and significant contingent gas resources of ~3.3 trillion cubic feet (3C).


As previously announced in July 2016, Tlou is one of two companies selected to bid for the development of up to 100MW of power using CBM in Botswana as an Independent Power Producer. The Company has now received a detailed Request for Proposal (“RFP”) from the Ministry of Mineral Resources, Green Technology and Energy Security. The closing date for this tender is 12 July 2017. The RFP requires details of the proposed field development, the installation of power generation facilities and supply of power into the grid in Botswana.


Tlou’s Managing Director Tony Gilby said: “We are pleased to receive the RFP from the Botswana Government and look forward to providing them with a detailed, compelling and compliant tender for our pilot power generation project at Lesedi.”


“This is the next step in the path to a binding offtake agreement and is testament to the fact that the Botswana Government remains committed to see CBM power projects developed in Botswana so that CBM can become a long term indigenous source of cleaner energy for the country.

Lesedi is a scalable project and being the first company in Botswana to achieve independently certified CBM gas reserves in 2016 as well as the first to receive Environmental Impact Statement approval we are clearly well placed to deliver on our objectives. We look forward to updating the market in due course as we make progress towards fulfilling our vision to become a significant provider of energy in Botswana and the wider region,” Gilby continued.


The Botswana government has developed this initiative to allow companies such as Tlou to develop pilot plants and facilitate the development of their CBM resource to levels which may lead to the supply of gas to the government owned 90MW Orapa Power Plant, which is situated approximately 150km to the north of Tlou’s Lesedi CBM Project.


Tlou Energy is an AIM and ASX listed company focused on delivering power in Botswana through the development of coal bed methane projects. Botswana has a severe energy shortage and is currently relying on expensive imported power and diesel generation to deliver its requirements. However, as the 100% owners of the most advanced gas project in the country, the Lesedi CBM Project (‘Lesedi’), Tlou Energy provides investors with access to a compelling immediate and longer term opportunity using domestic gas to produce power and displace the expensive diesel and import market.


Since establishment in 2009 the Company has significantly de‐risked the project in consideration of its goal to become a significant gas to power producer. The Company has the most advanced CBM project in Botswana and flared its first gas in 2014. It holds 10 prospecting licences covering an area of ~8,300Km2 and the Lesedi project already benefits from significant, independently certified contingent resources of~3.3 trillion cubic feet (3C).

In October 2016, the Company booked its maiden independently certified gas reserves, thereby becoming the first company in Botswana to do so. The Company is planning an initial scalable gas‐to‐power project in Botswana. Following successful implementation of this first scalable project, the Company plans to expand in order to provide further power to Botswana and the southern African region.

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Matsheka seeks raise bond program ceiling to P30 billion

14th September 2020
Dr Matsheka

This week Minister of Finance & Economic Development, Dr Thapelo Matsheka approached parliament seeking lawmakers approval of Government’s intention to increase bond program ceiling from the current P15 Billion to P30 billion.

“I stand to request this honorable house to authorize increase in bond issuance program from the current P15 billion to P30 billion,” Dr Matsheka said. He explained that due to the halt in economic growth occasioned by COVID-19 pandemic government had to revisit options for funding the national budget, particularly for the second half of the National Development Plan (NDP) 11.

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Lucara sits clutching onto its gigantic stones with bear claws in a dark pit

14th September 2020
Lesedi La Rona

Botswana Stock Exchange (BSE) has this week revealed a gloomy picture of diamond mining newcomer, Lucara, with its stock devaluated and its entire business affected by the COVID-19 pandemic.

A BSE survey for a period between 1st January to 31st August 2020 — recording the second half of the year, the third quarter of the year and five months of coronavirus in Botswana — shows that the Domestic Company Index (DCI) depreciated by 5.9 percent.

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Botswana Diamonds issues 50 000 000 shares to raise capital

14th September 2020
Diamonds

Botswana Diamond PLC, a diamond exploration company trading on both London Stock Exchange Alternative Investment Market (AIM) and Botswana Stock Exchange (BSE) on Monday unlocked value from its shares to raise capital for its ongoing exploration works in Botswana and South Africa.

A statement from the company this week reveals that the placing was with existing and new investors to raise £300,000 via the issue of 50,000,000 new ordinary shares at a placing price of 0.6p per Placing Share.

Each Placing Share, according to Botswana Diamond Executives has one warrant attached with the right to subscribe for one new ordinary share at 0.6p per new ordinary share for a period of two years from, 7th September 2020, being the date of the Placing Warrants issue.

In a statement Chairman of Botswana Diamonds, John Teeling explained that the funds raised will be used to fund ongoing exploration activities during the current year in Botswana and South Africa, and to provide additional working capital for the Company.

The company is currently drilling kimberlite M8 on the Marsfontein licence in South Africa and has generated further kimberlite targets which will be drilled on the adjacent Thorny River concession.

In Botswana, the funds will be focused on commercializing the KX36 project following the recent acquisition of Sekaka Diamonds from Petra Diamonds. This will include finalizing a work programme to upgrade the grades and diamond value of the kimberlite pipe as well as investigating innovative mining options.

Drilling is planned for the adjacent Sunland Minerals property and following further assessment of the comprehensive Sekaka database more drilling targets are likely. “This is a very active and exciting time for Botswana Diamonds. We are drilling the very promising M8 kimberlite at Marsfontein and further drilling is likely on targets identified on the adjacent Thorny River ground,” he said.

The company Board Chair further noted, “We have a number of active projects. The recently acquired KX36 diamond resource in the Kalahari offers great potential. While awaiting final approvals from the Botswana authorities some of the funds raised will be used to detail the works we will do to refine grade, size distribution and value per carat.”

In addition BOD said the Placing Shares will rank pari passu with the Company’s existing ordinary shares. Application will be made for the Placing Shares to be admitted to trading on AIM and it is expected that such admission will become effective on or around 23 September 2020.

Last month Botswana Diamond announced that it has entered into agreement with global miner Petra Diamonds to acquire the latter’s exploration assets in Botswana. Key to these assets, housed under Sekaka Diamonds, 100 % subsidiary of Petra is the KX36 Diamond discovery, a high grade ore Kimberlite pipe located in the CKGR, considered Botswana’s next diamond glory after the magnificent Orapa and prolific Jwaneng Mines.

The acquisition entailed two adjacent Prospecting Licences and a diamond processing plant. Sekaka has been Petra’s exploration vehicle in Botswana for year and holds three Prospecting Licenses in the Central Kalahari Game Reserve (Kalahari) PL169/2019, PL058/2007 and PL224/2007, which includes the high grade KX36 kimberlite pipe.

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