Africa-Focused Tlou Concludes Equity Placement
Africa-focused Tlou Energy said April 8 that it has raised A$1.2mn (US$0.85mn) via an equity placement.
AIM-, ASX-, and BSE-listed Tlou owns the Lesedi project in Botswana, which consists of four coal and CBM prospecting licences (PL) and a mining licence. The latter area is the focal point for Tlou's operations and includes the Lesedi pilot wells and the Selemo pilot wells where Tlou had been flaring gas before the start of the drilling programme.
Tlou also has the Mamba project, adjacent to Lesedi, which consists of five coal and CBM PLs, covering about 4,500 km2. Last week, it was awarded a new prospecting CBM licence by the government of Botswana.
“The proceeds of the placement, 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,” the company said.
“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,” Tlou's managing director Tony Gilby said.