Tlou to Raise £2.6mn for Botswana Project
Sydney-listed Tlou Energy plans to undertake an equity placement of £2.6mn (US$3.6mn), it said on March 16. The placing will be conducted through a bookbuild process.
The funds raised will be mainly used by Tlou to construct a 66kV transmission line from its Lesedi coalbed methane-to-power project in Botswana to the existing electricity grid at Serowe, and for field operating costs and ancillary equipment.
The company said it plans to start work as soon as possible on the transmission line following the award of tenders for the construction of overhead transmission lines and sub-stations. The environmental and social impact assessment for the line has been completed as well as route alignment and associated surveys.
Tlou has development rights to 8,300-km2 of acreage in Botswana which it estimates could contain 90.6bn m3 of gas trapped in coalbeds. It wants to develop this resource and use it to generate power. The project is to be developed in two phases costing $30mn.
The first $10mn phase involves the construction of a 100-km transmission line, sub-stations, grid connections and up to 2 MW of electricity generators, as well as the potential drilling of additional gas wells. The second, $20mn phase will expand generation capacity to 10 MW.
Tlou has also been working with a number of parties to secure funding for the Lesedi project. The company is in talks with a "very reputable Botswana-based entity" for financing for the project, it said earlier this month.