TLOU Energy, an ASX, AIM and BSE listed company, has proposed to raise US$3.5mn to secure funding for the Lesedi project
The proposed placing by Tlou Energy will be mainly applied towards construction of a 66KV transmission line from the company's Lesedi project to the existing electricity grid at Serowe, Botswana towards field operating costs and ancillary equipment.
Tlou Energy has been working with a number of parties to secure funding for the Lesedi project. The most advanced project finance discussions are currently with a very reputable Botswana based entity, who are proceeding to get a third-party review of the project as part of their due diligence process.
The Lesedi project is set to be developed in two phases. Phase one involves transmission line construction, sub-stations, grid connection, electricity generators and potentially the drilling of additional gas wells. Funding required for phase one is US$10mn, which can be staged if necessary.
Phase two funding is for the expansion of electricity generation up to 10MW. This is planned to include drilling of gas wells and the purchase of additional generation assets. Funding required for phase two is worth US$20mn. Upon successful completion of phase one and two, the company plans to expand the project beyond 10MW.
Shore Capital Stockbrokers will be conducting an accelerated bookbuilding process in respect of the placing. Shore Capital has entered into an agreement with Tlou Energy under which, subject to conditions, Shore Capital will agree to use its endeavours to procure subscribers for placing shares at the relevant price.
