Tlou Energy Ltd Mining licence application and RFP submission (8513J)
03 July 2017 - 4:00PM
UK Regulatory
TIDMTLOU
RNS Number : 8513J
Tlou Energy Ltd
03 July 2017
3 July 2017
Tlou Energy Limited
("Tlou" or "the Company")
Mining Licence Application Lodged and RFP Closing Date
Extension
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"), has lodged a Mining
Licence Application for the Lesedi CBM project with Botswana's
Department of Mines in the Ministry of Mineral Resources, Green
Technology and Energy Security ("the Ministry").
Key points
Ø Tlou lodges Mining Licence Application for the Lesedi CBM
project with the Ministry
Ø The Ministry has indicated it will extend the closing date of
the Request for Proposal ("RFP") for the development of up to 100MW
of CBM Power as it is yet to release some supporting
documentation
Tlou's Managing Director Tony Gilby said, "The Mining Licence
for the Lesedi CBM Project is the first application of its kind to
be lodged in Botswana. The award of the Mining Licence will be
another milestone for the Company which further enhances the first
mover advantage we have to develop a Gas-to-Power project in the
country. The issue of a Mining Licence will pioneer the development
of a new and exciting natural CBM gas industry in Botswana, an
industry that will lead to a new indigenous source of energy and
employment for the country. Over time it will potentially allow new
manufacturing industries to develop using Botswana CBM gas and
facilitate the creation of a new renewable energy industry. This is
due to gas being a relatively clean and cost-effective way to
provide peaking power to complement the often-intermittent nature
of renewable energy. I would like to thank the team at Tlou and our
consultants for putting together such a comprehensive application
and look forward to the Ministry's assessment of the application in
due course".
In Botswana, holders of Prospecting Licences ("PL") are issued
Mining Licences once exploration on a relevant Prospecting Licence
has been concluded and the holder of the Prospecting Licence is
ready to commence commercial production. Mining licences are
assessed in accordance with the prescribed statutory requirements
of the Botswana Mines and Minerals Act. Two major components of a
Mining licence application are an approved EIA (granted for the
Lesedi Project in September 2016) and a feasibility study for the
relevant project.
Some of the benefits of a Prospecting Licence being converted
into a Mining Licence include:
1. Tenure: The permit being converted from a short-term
Prospecting Licence tenure (2-3 years) to a longer term tenure (20
plus years).
2. Commercial rights: A Mining Licence affords the holder the
legal right to sell the resource for which the licence has been
granted. The granting of a Mining Licence is therefore a
pre-requisite to commercialising a gas resource.
Request for Proposal for CBM Power Project
Tlou has received confirmation from the Ministry that they
intend issuing an addendum to the Request for Proposal ("RFP") for
the development of up to 100MW of CBM Power and a new closing date
will be advised in due course.
Tlou received a Request for Proposal from the Government of
Botswana for the development of up to 100MW of power using CBM in
January 2017. The proposal, which will include a power purchase
agreement, will assist in the development of a CBM gas industry in
the country and create a new market for Tlou's
independently-certified gas reserves and significant contingent gas
resources of 3.2 trillion cubic feet (3C). The RFP requires details
of the proposed field development, the installation of power
generation facilities and supply of power into the grid in
Botswana.
The RFP originally outlined that a number of supporting
documents would be released to bidders at a later date and that the
closing date for submissions would be 12 July 2017. As some of the
supporting documentation has not yet been released, the Ministry
has indicated that they will allow further time beyond the original
closing date for submissions to be completed. The Ministry has not
yet confirmed a new closing date.
The Company has completed a significant portion of the work
required based on the documentation received to date and will aim
to get the proposal submitted as soon as possible once the
supporting documents are received. As a result, we do not currently
envisage any changes to our potential project timelines.
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 Brocklehurst, Megan
Dennison
------------------------------------ ---------------------
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 import power market.
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 10 Prospecting Licences covering an area of 8,300Km(2) 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.
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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