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Tlou Energy, BPC commence power purchase agreement

Tlou Energy Managing Director: Mr Anthony Gilby

Power Purchase deal between Tlou Energy, Botswana’s single Coal Bed Methane power producer and Botswana Power Corporation (BPC), the national power utility outfit has approached final stages. An agreement between the two entities has been reached, Tlou said this week.

Tlou Energy is a Botswana Stock Exchange listed company focused on generating cleaner power in Botswana for Supply into the local and regional power markets.

The company revealed on Monday that an interim 2 Mega Watts Coal Bed Methane (CMB) pilot Power Purchase Agreement (PPA) has been agreed between the itself and Botswana Power Corporation (BPC).  A communiqué from Tlou says the interim agreement is now undergoing final regulatory formalities.

BPC has since requested the terms of the agreement to remain confidential for now. Managing Director of Tlou Energy Mr. Anthony Gilby said: “Agreement of this PPA is a major step forward for Tlou and the Company would like to express thanks to the BPC team for their assistance.”

Gilby further revealed that Tlou is in discussions with potential project finance partners who have been waiting to see the interim Power Purchase Agreement in place which facilitates connection to the power grid leading to first revenue for the company.

“A pathway to revenue generation is key for financiers and once connected to the grid expansion of the project is seen as a relatively straightforward and largely de-risked process,” he said.

Last month Tlou signaled limited funds as an impediment to desired progress in archiving its commercial gas flow targets. The junior exploration company is developing Botswana’s first coal bed methane (CBM) natural gas project which will produce power for national and international consumption.

Currently Tlou is in negotiations with wholly government owned investment arm Botswana Development Corporation (BDC) to finance the project and ensure smooth exploration works towards achieving targeted commercial gas rates continues.

“We are in continuous negotiations with Botswana Development Corporation (BDC) to fund development of this watershed project, the first 10MW of the Lesedi CBM Gas-to-Power project in Botswana and we have received an indicative non-binding term sheet as the negotiations have progressed,”  revealed Anthony Gilby last month.

Tlou Energy submitted a proposal to Botswana’s Ministry of Mineral Resources reen Technology and Energy Security (MMGE) in 2018 for the development of a 10MWCBM Gas-to-Power plant.  The 10MW proposal is separate to the 2MW interim PPA announced today. BPC and MMGE continue to assess the 10MW proposal.

Tlou Energy is  focused on delivering Power solutions  to Botswana and southern Africa  to alleviate some of  the  chronic  power  shortage  in  the  region. The company is  is currently developing  projects using gas and plans to combine this  with solar power  to provide a cleaner base load power  source.

Botswana has a significant energy shortage and generally relies on imported power and diesel eneration to fulfill its power requirements.  Tlou’s Lesedi Power Project provides  investors  with access to a compelling opportunity  to displace  expensive, carbon intensive  diesel  and  imported  coal-fired  electricity  with  a  cleaner  and  more  environmentally friendly alternative.

In addition to plans  for  cleaner  energy,  the  Company  has also   committed  to  developing  community  projects  in  Botswana  adding  real  value  to peoples’  lives  in  a  region  with  sparse  services and where few opportunities exist for  the  local  population.

This  includes  work  to  assist  communities  to  become  self-sustaining,  develop  business  opportunities , improve  access  to  education  and  create  opportunities  for self‐employment and wealth creation.

The Company produced its first gas in 2014, has a Mining Licence valid to 2042 and 10 Prospecting Licences.  The Company’s project acreage covers a vast area spanning approximately 9,300 Km2 in total.

Tlou’s ‘Lesedi’ and ‘Mamba’ projects already benefit from significant independently certified 2P gas Reserves of ~41 Billion Cubic Feet(BCF).  In addition, 3P gas Reserves of ~427 BCF and Contingent Gas Resources of ~3,043 BCF provide significant additional potential.

Anthony Gilby Company is planning an initial scalable power project.  Following successful implementation of this first scalable project, the Company looks forward to evaluating longer‐term prospects for the delivery of additional electricity to Botswana   and to neighboring countries.

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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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