Tlou Energy seeks to raise P92m
Lewanika Timothy | Monday May 29, 2023 06:00
The latest fundraising is part of a process to finance the company’s Lesedi project, which is set to become the country’s first commercial CBM plant, opening up a new ecosystem of electricity generation in Botswana.
Tlou expects Lesedi’s project costs to reach P300 million and part of the funding has already been sourced from the BPOPF. “Eligible shareholders will have a chance to purchase a set of four new Shares for every 11 Shares held at an issue price of 0.035 Australian dollars (32 thebe) per new share,” Tlou officials said in a circular to shareholders recently.
“A maximum of 304.1 million new shares will be issued under the Offer. “The new shares will be fully paid ordinary shares ranking equally in all respects with fully paid ordinary shares in the company already on issue.” The first phase of the Lesedi project involves the drilling of six natural gas wells, the construction of the 100km transmission line to Serowe, the construction of substations, grid connections and an electricity generator to produce two megawatts of electricity. Upon completion, the second phase of the project will involve ramping up production to 10MW of electricity with the drilling of more natural gas wells and the purchase of more electricity generation equipment.
The first electricity generated at the Lesedi project will be sold under a 10MW Power Purchase Agreement (PPA) already signed with the Botswana Power Corporation. Once in full production, the 10MW of generation could provide annual revenue equivalent to approximately $10 million (P91m). “The issuance of shares is expected to raise capital for the drilling of wells, land purchase, operations and generation facility together with raising additional working capital for the project,” company officials said.
The company expects that the first phase of the project will be complete by the third quarter of 2023.