BRISBANE: Tlou Energy Limited, company focused on delivering power in Botswana and southern Africa through the development of coal bed methane, has confirmed that it has successfully completed an equity placement to sophisticated investors totaling approximately AUD $1.2 million.
The placement comprises the issue of 12 million new ordinary shares (representing 2.85% of the enlarged share capital) at an issue price of AUD $0.10 per share.
The proceeds along with existing cash provides sufficient working capital for ongoing activities including continued gas flow testing at the recently completed production wells and efforts to secure a power purchase agreement.
Tlou Energy is continuing discussions with Botswana based entities to fund expanded field operations and the first stage of above ground power generation infrastructure. Also, the Company anticipates first gas pressure increase (leading to initial gas flow) at the recently drilled production wells to be available in the coming weeks and will update the market accordingly.
Tlou’s Managing Director, Mr Tony Gilby commented, “We welcome the confidence shown in the Company by the two existing shareholders who participated in this strategic placement. The additional capital also removes perceived near-term financial pressure from the Company, as upon any successful gas flows and/or tender result we will not need to immediately raise capital. Rather, this allows the Company ample time to assess the available financing options and to help position Tlou Energy as part of the solution to the looming regional power shortage. I look forward to updating the market on initial production testing data and the tender process in the coming weeks.”[the_ad id=”31605”]