Tlou moves to raise P24 million for 66KV transmission line project
Business
Tlou Energy has launched a partially underwritten non- renounceable entitlement offer to raise up to P24 million in a bid to aid its ongoing power project. The Botswana Stock Exchange (BSE) listed energy firm announced this week.
In a statement published on the BSE website, the company said the entitlement offer entailed up to 75 030 031 new offer shares at a price A$0.04 per share which is £0.022 and BWP0.32 per share.
Tlou Energy explained that eligible shareholders will subscribe for 1 fully paid ordinary share for each 6 fully ordinary shares. In addition to offer shares, participants will be granted one unlisted option for every two offer shares allotted. New options will have expiry date of two years from the date of issue and exercisable at any time prior to expiry at a price of A$0.08 per share.
Tlou’s Managing Director, Mr Tony Gilby revealed that the net proceeds of the Entitlement offer, along with existing cash, will mainly be used for detailed engineering and design of the proposed 66kv transmission line to connect the Lesedi project to electricity grid.
Furthermore the money will be used for due diligence costs in relation to the provision of development funding for the Lesedi project as well as to fund ongoing field operations and general working capital.
Gilby also revealed that the Company plans to commence work on the transmission line to connect to Lesedi project to the electricity grid as soon as possible. The Environmental and Social Impact Assessment for the line has been completed as well as route alignment and associated surveys.
“Tlou now plans to progress the design and engineering of the 66kV overhead line and 66kV line feeder bay extension at the Serowe Substation,” he said in the statement.
The MD also noted that the company is in advanced discussions with development funding institutions interested in providing debt and/or equity capital to fund the next stage of the Lesedi Project.
This work according to the statement includes but not limited to, drilling of additional wells, installation of generation assets, purchase f capital equipments and installation of associated infrastructure to develop up to 10MW of power.
Early this year Tlou reported that its has entered into preliminary Power Purchase agreement deal with Botswana Power Corporation (BPC), the national power utility outfit. The company said the agreement entailed an interim 2 Megga Watts Coal Bed Methane (CMB) pilot Power Purchase Agreement (PPA).
Tlou has also previously reported that its negotiations with Botswana Development Corporation (BDC) , a wholly Government owned investment arm were at an advanced stage .The Company is negotiating a term sheet with BDC, which is progressing through the Corporation’s internal corporate processes.
“Once the term sheet is signed, due diligence covering commercial, technical, legal, reputational, environmental, and social and governance can be completed. The costs of this will be borne by Tlou. The due diligence process is expected to take 8 to 12 weeks from the execution of the term sheet,” revealed Gilby.
Tlou’s Managing Director, Mr Tony Gilby further said “Funds to be raised by the Entitlement Offer will go towards two key items to take the Company forward, grid connection and development funding.”
He explained that the Grid connection is key to get the power project up and running and start revenue generation. Giving an update on the company’s progress Gilby said operations are continuing in Botswana with gas being produced at the Lesedi 4 production pod.
“Subject to funding, the we plan further exploration work over the Mamba project area and upon receipt of regulatory approval, work can commence on the Boomslang project, the Company’s most recently acquired project area,” he revealed.
Furthermore successful securing of funds from BDC will also cover working capital requirements including general and administrative costs across the company’s three stock exchange listings on Australian Stock Exchange, London Stock Exchange Alternative Investment Market (AIM) and the Botswana Stock Exchange (BSE).
Meanwhile the company has noted that the current pandemic of COVID-19 may continue to have impact on all proposed activities earmarked to be undertaken by expected funds in terms of execution and timing.
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Business
Investors inject capital into Tsodilo Resources Company
Local diamond and metal exploration company Tsodilo Resources Limited has negotiated a non-brokered private placement of 2,200, 914 units of the company at a price per unit of 0.20 US Dollars, which will provide gross proceeds to the company in the amount of C$440, 188. 20.
According to a statement from the group, proceeds from the private placement will be used for the betterment of the Xaudum iron formation project in Botswana and general corporate purposes.
The statement says every unit of the company will consist of a common share in the capital of the company and one Common Share purchase warrant of the company.
Each warrant will enable a holder to make a single purchase for the period of 24 months at an amount of $0.20. As per regularity requirements, the group indicates that the common shares and warrants will be subject to a four month plus a day hold period from date of closure.
Tsodilo is exempt from the formal valuation and minority shareholder approval requirements. This is for the reason that the fair market value of the private placement, insofar as it involves the director, is not more than 25% of the company’s market capitalization.
Tsodilo Resources Limited is an international diamond and metals exploration company engaged in the search for economic diamond and metal deposits at its Bosoto Limited and Gcwihaba Resources projects in Botswana. Â The company has a 100% stake in Bosoto which holds the BK16 kimberlite project in the Orapa Kimberlite Field (OKF) in Botswana.