Tlou Energy Limited, the AIM and ASX listed company focused on delivering power in Botswana and Southern Africa through the development of coal bed methane (CBM) projects, has announced the successful completion of a A$5.2 million (approximately £3.1 million) placement of new ordinary shares (‘Placement’).
The Placement comprises the issue of 51,788,334 new ordinary shares (representing 17.9% of enlarged share capital) at an issue price of A$0.10 or £0.06 per share to sophisticated and professional investors in Australia and the United Kingdom. The Placement shares will rank equally with Tlou’s existing shares on issue.
The proceeds of the Placement, along with existing cash, will be applied by Tlou for the following:
- Acquisition and interpretation of new 2D seismic data in areas considered to be highly prospective for additional Reserves by Tlou’s reserve certifiers; drilling a limited number of vertical (cored) wells along the new seismic lines (with geophysical.
- Logging and coal core gas sampling) to a depth of approximately 500 m.
- Completing various studies (upstream and downstream) required for the submission of the mining licence application and tender for the Botswana Government’s 100 MW CBM pilot project.
- on-going production testing at Selemo, including installing gas engines to run the pumps on the existing wells.
- Costs of the Placement; and working capital for its Lesedi CBM Project and corporate costs.
The objective of the work programme above is to expand the Company’s independently certified gas Reserves and complete the licensing requirements prior to commencing development of the Lesedi CBM Project.
Read the article online at: https://www.worldcoal.com/exploration-and-development/27032017/tlou-energy-to-invest-31m-in-coal-bed-methane-projects/