Tlou Energy Ltd, the AIM and ASX listed company focused on delivering power in Botswana and Southern Africa through the development of coalbed methane (CBM) projects, has completed a AUS$3 million oversubscribed placement of new ordinary shares.
The placement comprises the issue of 31 578 947 new shares (representing 15.4% of existing shares on issue) at an issue price of AUS$0.095 or £0.055 per share to sophisticated and professional investors in Australia and the UK (placement). The placement shares will rank equally with Tlou’s existing shares on issue.
The net proceeds of the placement, along with existing cash, will be applied by Tlou to the on-going production testing at Selemo, achieving an initial independent reserves certification, completing environmental and mining licence approvals and working capital for its Lesedi CBM project, the most advanced CBM project in Botswana.
The placement price represents a discount range of 9 – 19% to the 20 day volume weighted average price for Tlou’s shares traded on the ASX and AIM markets and was a result of discussions over several months with IK Botswana Investments Pty Ltd (IKBI), an Australian private company associated with IK Holdings Ltd, which is a party (along with General Electric International Inc.) to Tlou’s recently announced co-operation agreement. As part of the placement, IKBI has agreed to subscribe for 7 115 000 new shares, which represents 3% of the fully diluted shares following completion of the placement.
The placement shares will be issued within Tlou’s existing placement capacity and as such, shareholder approval will not be required. Settlement of the Placement shares is expected to occur on 6 September 2016, with allotment on 7 September 2016. Application will be made for the admission of the placement shares to trading on ASX and AIM (Admission).
Tlou’s Acting Managing Director, Gabaake Gabaake commented: “This placement along with the recently announced co-operation agreement with General Electric International Inc. and IK Holdings Ltd provides significant momentum for Tlou to progress the production testing at Selemo, with the objective of achieving initial reserves certification at Lesedi and the first gas to power project in Botswana. We were very pleased with the investment by IKBI and the continued support from our institutional and sophisticated shareholders in Australia and the UK.”
Read the article online at: https://www.worldcoal.com/cbm/01092016/tlou-energy-completes-oversubscribed-equity-placement-2340/