Tlou secures A$2mn loan to support Botswana gas-power project
Africa-focused Australian energy company Tlou Energy has secured a A$2mn ($1.3mn) loan from its largest shareholder ILC Investments to support the Lesedi gas-power project in Botswana, it said on May 2. ILC has already provided A$7.5mn in capital via previous share placements.
ILC has indicated it is willing to continue to provide funding support to assist the company to reach its goal of connecting to the power grid and earning first revenue through the sale of electricity in Botswana, Tlou said.
The loan has a three-year term, commencing on May 1, and there are no arrangement fees. Interest will be charged at 10% per year and payable each quarter. The interest rate reflects the fact that the loan is unsecured and is only scheduled to be repaid at the end of the term, Tlou said.
Tlou recently spudded the Lesedi 6 gas production pod as part of the next phase of drilling at its Lesedi coalbed methane project in Botswana. Gas from Lesedi 6 is planned to be used for electricity generation for the existing 10 MW power purchase agreement with Botswana Power Corporation once the transmission line, substations and associated electrical infrastructure are in place.
The company is also looking to generate solar power and produce green hydrogen in Botswana.