Tlou Energy, developers of the first Coalbed Methane (CBM) project in Botswana, this week announced an entitlement offer in a bid to raise P24 million for its projects.
The company’s money-making effort involves a partially underwritten offer of up to 75 million new shares at a price of P0.32 per share.
The raised funds will go towards detailed engineering and design of the proposed 66 Kilovolts (Kv) transmission line to connect Tlou’s Lesedi Project to the electricity grid.
The cash will also cover due diligence costs in relation to the provision of development funding for the Lesedi initiative as well as to continue current operations.
The company says it plans to commence work on the transmission line to connect the Lesedi Project to the electricity grid ‘as soon as possible’.
Tlou has already completed the Environmental and Social Impact Assessment for the line as well as route alignment and associated surveys.
The organization says it now plans to progress the design and engineering of the 66Kv overhead line and 66Kv line feeder bay extension at the Serowe Substation.
As well as availing extra shares, the company says it is also in discussions with development funding institutions interested in providing debt or equity capital to fund the next stage of its Lesedi Project.
According to a statement the enterprise shared with shareholders, this work includes: drilling additional wells, installation of generation assets, purchase of capital equipment, and installation of associated infrastructure to develop 10Megawatt (MW) power.
Tlou Energy Managing Director, Tony Gilby says funds will go towards two key items to take the company forward: grid connection and development generation.
“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,” stressed Gilby.
After many years of hard work, Gilby says the potential to transform the company from explorer to power producer finally looks to be coming to fruition.
Tlou Energy, whose largest shareholders is Botswana Public Officers Pension Fund with a 10.5 percent stake, says it looks forward to addressing Botswana’s power challenges, which is currently controlled by the country’s neighbors.
This shortage has provided the likes of Tlou Energy with an opportunity to tap into the opening to address Botswana’s energy demands, which averages 610MW a day.