Tlou Energy Limited has been advised that a Mining Licence for the Lesedi CBM project has been granted by Botswana's Department of Mines in the Ministry of Mineral Resources, Green Technology and Energy Security.
Mining Licence terms
As announced on 21 August 2017, the company would make a further announcement on the Mining Licence once it had been reviewed. The material terms and information included in the Mining Licence are:
- ?The Mining Licence has been issued in terms of Section 41 of the Mines and Minerals Act of Botswana.
- ?The licence grants the holder the right to produce CBM natural gas in the approved Mining Licence area for a term of 25 years commencing on 21 August 2017 and ending on 20 August 2042.
- ?The Mining Licence was granted in full across the area applied for, which was previously known as Prospecting Licence PL002/2004. ?The licence area is approximately 900 km2.
- ?An annual licence fee is payable to the office of the Director of Mines of approximately US$9000.
- ?The Government has decided not to exercise its option to take up a shareholding in the project as provided for under Section 40 of the Mines and Minerals Act.
- ?Project development can commence at any time with no minimum spend stipulated.
- ?Royalties are payable to the Government of Botswana in accordance with Section 66 of the Mines and Minerals Act. Royalties are currently payable at a rate of 3% of gross market value. Gross market value is defined as the sale value receivable at the mine gate in an arm's length transaction without discounts, commissions or deductions for the mineral or mineral product on disposal.
Read the article online at: https://www.worldcoal.com/cbm/31082017/tlou-energy-reveals-botswana-cbm-project-licence-details/