Line to connect Lesedi Project to national power grid
In efforts to raise P24 million with which to speed up generating electricity, Tlou Energy has launched a partially underwritten non-renounceable entitlement offer to its shareholders, the company’s Managing Director, Tony Gilby, has said.
“We are pleased to announce a partially underwritten entitlement offer of up to 75,030,031 new offer shares at a price of P0.32 (the issue price) per share,” Gilby said in a statement recently. “Eligible shareholders may subscribe for one fully paid ordinary share for each six fully paid ordinary shares.”
A non-renounceable rights issue refers to an offer issued by a corporation to shareholders to purchase more shares of the corporation (usually at a discount).
According to Gilby, funds raised from the sale of shares and existing capital will be used to fund engineering and designing of a proposed 66kV transmission line to connect the Lesedi Project to the electricity grid.
“Grid connection is key to get the power project up and running and start revenue generation,” said Gilby. “Development funding can provide a vital financial platform to help rapidly expand Tlou’s generation capability. Successfully completing these two items could prove to be a significant value driver for the company. We are extremely grateful for the ongoing support of the company shown by its stakeholders and in particular to our long-term shareholders.”
He added that after many years of hard work, the potential to transform the company from explorer to power producer looks to be coming to fruition. “And I look forward to building on our success to date,” he said. “The company plans to commence work on the transmission line to connect the Lesedi Project to the electricity grid as soon as possible.”
With that, Gilby noted, the environmental and social impact assessment for the project line has been completed as well as route alignment and associated surveys. “We now plan to progress to the design and engineering of the 66kV overhead line and 66kV line feeder,” he said.
According to the MD, Tlou 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 includes but is not limited to drilling of additional wells, installation of generation assets, purchase of capital equipment, and installation of associated infrastructure to develop up to 10MW of power,” he said.
Listed on the Botswana Stock Exchange, the Australian Securities Exchange and London’s AIM market, Tlou is focused on delivering gas-to-power solutions to Botswana and Southern Africa to alleviate some of the chronic power shortages in the region. The company is developing projects using coal bed methane (CBM) natural gas.
Botswana has a significant energy shortage and generally relies on imported power and diesel generation to fulfill its electricity requirements. As 100 percent owner of the most advanced gas project in the country, the Lesedi CBM Project, Tlou Energy provides investors with access to a compelling opportunity, using domestic gas to produce power and displace expensive diesel and imported power.