TIDMTLOU
RNS Number : 9425W
Tlou Energy Ltd
20 November 2017
20 November 2017
Tlou Energy Limited
("Tlou" or "the Company")
Tlou secures new Botswana based cornerstone investor subject to
listing on the Botswana Stock Exchange
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, is pleased to
announce that the Company has entered into conditional subscription
agreements with investment funds managed by African Alliance
Botswana Limited, a leading asset manager based in Botswana.
Key Points:
Ø Conditional subscription Agreements signed with Botswana based
investment funds managed by African Alliance Botswana Limited
("African Alliance"), a leading asset manager in Botswana;
Ø African Alliance managed funds will subscribe for
approximately 21.2 million new ordinary shares in Tlou at a
subscription price of P1.56 (approximately GBP0.11 or A$0.20)(1)
per share, raising P33.0 million (approximately GBP2.4 million or
A$4.1 million);
Ø Subscription is conditional on Tlou listing on the Botswana
Stock Exchange ("BSE"), expected to occur around mid-December
2017.
Tlou's Managing Director, Mr Tony Gilby commented, "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. Tlou is
focussed on building a new industry within Botswana, which will
create new employment to support local communities."
(1) Pula ("P") is the local currency of Botswana. One Pula is
approximately A$0.1245 or GBP0.0716 as at 17 November 2017.
Subscription Agreements
Under the terms of the Subscription Agreements, Tlou will issue
approximately 21.2 million new ordinary shares (representing 6.5%
of the enlarged share capital of the Company) at an issue price of
P1.56 (approximately GBP0.11 or A$0.20) per share to a number of
investment funds in Botswana managed by African Alliance (the
"Subscription"). The Subscription shares will rank equally with
Tlou's existing ordinary shares on issue.
The Subscription is conditional on the Company listing on the
BSE as the Botswana based investment funds participating in the
Subscription have a mandate requirement to invest in BSE listed
companies.
The Subscription price represents a discount of approximately
15% to the 10-day volume weighted average price for Tlou's shares
traded on the AIM market prior to signing the Subscription
Agreements. The Subscription shares will be issued within Tlou's
existing placement capacity and as such, shareholder approval will
not be required.
The proceeds of the Subscription, along with existing cash, will
be applied by Tlou to complete the current seismic and core hole
appraisal program, commence first phase development dual lateral
production pod drilling at the Lesedi project, fund the costs of
the BSE listing and Subscription and for working capital
purposes.
The key objective of the ongoing appraisal and development
program is to expand the gas reserves and contingent resources,
thereby adding resource value to the Company, and to commence the
first phase of project development early in 2018. This will ensure
the Company stays on track with its plan to deliver first power
sales in 2019.
Botswana Stock Exchange Listing
As previously noted, the Subscription Agreements are conditional
on Tlou listing on the BSE (given the investment mandate
requirements of the Botswana based investment managers). Listing on
the BSE has a number of advantages for the Company. One of the key
advantages is that, as a BSE listed entity, the Company has access
to the significant pension investment funds which are available for
development of Botswana based projects. This could be invaluable as
the Company progresses discussions on financing options for its
planned CBM gas to power project.
Tlou plans to submit its application to the Botswana Stock
Exchange Committee for listing on the Main Board of the BSE this
week. Listing on the BSE is expected to occur by mid-December
2017.
The Subscription is being managed by Integra Advisory Partners
Pty Ltd with Motswedi Securities (Pty) Ltd in Botswana acting as
Sponsoring Broker to the Subscription and BSE Listing.
Application will be made by Tlou for the admission of the
Subscription Shares to commence trading once the Subscription
Agreements have become unconditional. Tlou will provide an update
to the market once this occurs and advise the timetable for the
planned BSE listing and admission and allotment of the Subscription
shares.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
**ENDS**
For further information regarding this announcement please
contact:
Tlou Energy Limited +61 7 3012 9793
------------------------------------ ---------------------
Tony Gilby, Managing Director
------------------------------------ ---------------------
Solomon Rowland, Company Secretary
------------------------------------ ---------------------
Grant Thornton (Nominated
Adviser) +44 (0)20 7383 5100
------------------------------------ ---------------------
Samantha Harrison, Colin Aaronson,
Harrison Clarke
------------------------------------ ---------------------
+44 (0) 207 408
Shore Capital (Joint Broker) 4090
------------------------------------ ---------------------
Jerry Keen, Mark Percy, Toby
Gibbs
------------------------------------ ---------------------
Optiva Securities Limited
(Joint Broker) +44 (0)20 3137 1904
------------------------------------ ---------------------
Jeremy King, Christian Dennis
------------------------------------ ---------------------
St Brides Partners Limited +44 (0) 20 7236
(Public Relations) 1177
------------------------------------ ---------------------
Lottie Wadham, Megan Dennison,
Susie Geliher
------------------------------------ ---------------------
FlowComms Limited (Investor +44 (0) 7891 677
Relations) 441
------------------------------------ ---------------------
Sasha Sethi
------------------------------------ ---------------------
Company Information
Tlou Energy is an AIM and ASX listed company focused on
delivering power in Botswana through the development of coal bed
methane ("CBM") gas. Botswana has a severe energy shortage and is
currently relying on expensive imported power and diesel generation
to deliver its requirements. However, as the 100% owners of the
most advanced gas project in the country, the Lesedi CBM Project,
Tlou Energy provides investors with access to a compelling
immediate and longer-term opportunity using domestic gas to produce
power and displace expensive diesel and imported power.
The Company is led by an experienced Board, management and
advisory team including individuals with successful track records
in the Australian CBM industry.
Since establishment in 2009, the Company has significantly
de-risked the project in consideration of its goal to become a
significant gas-to-power producer. The Company has the most
advanced CBM project in Botswana and flared its first gas in 2014.
It holds a Mining Licence and nine Prospecting Licences, covering
an area of 8,300Km(2) in total, and the Lesedi Project already
benefits from significant independently certified Contingent Gas
Resources of 3.2 trillion cubic feet (3C) and independently
certified Gas Reserves of 261 billion cubic feet (3P).
The Company is planning an initial scalable gas-to-power project
in Botswana. Following successful implementation of this first
scalable project, the Company plans to expand to provide further
power to Botswana and the southern African region.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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