JOHANNESBURG (miningweekly.com) – Coal-bed methane project developer Tlou Energy has secured the support of new investors and plans to list on the Botswana Stock Exchange (BSE) by mid-December.
The Aim- and ASX-listed company will submit its application to list on the main board of the BSE this week.
Tlou on Tuesday said the listing would hold a number of advantages for the company, including that it would, as a BSE-listed entity, have access to significant pension investment funds that are available for the development of Botswana-based projects.
The listing is also a condition of subscription agreements entered into with investment funds managed by Botswana asset manager African Alliance Botswana.
Under the terms of the agreements, African Alliance-managed funds will subscribe for about 21.2-million new Tlou shares at P1.56, or 11p or A$0.20, apiece to raise a total of P33-million, or £2.4 million or A$4.1 million.
“Securing African Alliance-managed funds as strategic long-term and committed local shareholders in Botswana and listing on the BSE is a significant milestone for the company.
“Having local shareholders on our register confirms the support for the project from within the Botswana investment community and becoming a Botswana-listed entity opens further development funding options to the company,” commented Tlou MD Tony Gilby.
Tlou will use the funds raised, along with existing cash, to complete a seismic and core hole appraisal programme at its Lesedi project, to start the first phase development dual lateral production pod drilling at the project and to fund the BSE listing costs.