TIDMTLOU
RNS Number : 3164D
Tlou Energy Ltd
27 October 2020
27 October 2020
Tlou Energy Limited
("Tlou" or "the Company")
Funding update and Ministerial site visit
Tlou Energy Limited is an ASX, AIM and BSE listed company
focused on delivering power in Botswana and southern Africa through
the exploration and development of gas and solar power.
Key Points
-- Project Finance negotiations on-going
-- Ministerial visit to the Lesedi power project
Project Finance
The Company is currently seeking funding for development of the
Lesedi power project. The project is proposed to be developed in
two phases.
Phase one involves transmission line construction, transformers,
grid connection, electricity generators and potentially the
drilling of additional gas wells. The 100 Km transmission line will
run from the Lesedi project to the town of Serowe where it will
connect to the existing power grid. Initial generation is proposed
to be up to 2MW of electricity. Funding required for phase one is
USD $10m.
Phase two funding is for the expansion of electricity generation
up to 10MW. This will involve drilling additional gas wells and the
purchase of additional electricity generators. Funding required for
phase two is USD $20m.
Upon successful completion of phase one and two, the Company
plans to expand the project beyond 10MW. This expansion is expected
to be completed using project revenues and debt.
Current funding discussions are mainly related to phase one (USD
$10m) and have been progressing well. The Company is in discussion
with a number of groups, some more advanced than others. These
include institutions with a focus on infrastructure development
within Botswana and cleaner energy groups looking to see a move
away from traditional coal fired generation.
Discussions with Botswana Development Corporation (BDC) have
been ongoing for several months. The Company understands that BDC
is seeking internal investment approval and the Company continues
to work with BDC to successfully conclude a funding proposal that
fits within BDC's investment parameters.
In addition, the Company has recently received an indicative
term sheet for transmission line and transformer funding from a new
potential financier. The Company will assess this offer alongside
other potential financiers to evaluate the best possible option and
funding partner going forward.
Ministerial Site Visit
The Company were delighted to welcome Honourable Minister Lefoko
Moagi, Minister of Mineral Resources Green Technology and Energy
Security (MMGE) and his team to the Lesedi project. Honourable
Minister Moagi has been a long-term supporter of Tlou's project and
again reiterated his support during his visit.
Tlou Energy Limited would like to sincerely thank Honourable
Minister Moagi for taking the time to visit the Company's
operations and for the continued support that we receive from the
Ministry.
Further detail of the visit is available on the Company's
website: http://tlouenergy.com/presentations
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.
By Authority of the Board of Directors
Mr Anthony Gilby
Managing Director
For further information regarding this announcement please
contact:
Tlou Energy Limited +61 7 3012 9793
Tony Gilby, Managing Director
-----------------
Solomon Rowland, General Manager
-----------------
+44 (0)20 7383
Grant Thornton (Nominated Adviser) 5100
-----------------
Colin Aaronson, Harrison Clarke, Samantha Harrison,
Seamus Fricker
-----------------
+44 (0) 207 408
Shore Capital (Broker) 4090
-----------------
Jerry Keen, Toby Gibbs, John More
-----------------
Company Information
Tlou Energy is focused on delivering Power solutions to Botswana
and southern Africa to alleviate some of the chronic power shortage
in the region. Tlou is currently developing projects using gas and
plans to combine this with solar power to provide a cleaner base
load power source.
Botswana has a significant energy shortage and generally relies
on imported power and diesel generation to fulfil its power
requirements. Tlou's Lesedi power project provides investors with
access to a compelling opportunity to displace expensive, carbon
intensive diesel and imported coal-fired electricity with a more
environmentally friendly alternative.
In addition to plans for cleaner energy, the Company is also
committed to developing community projects in Botswana adding real
value to peoples' lives in a region with sparse services and where
few opportunities exist for the local population. The Company aims
to assist communities to become self-sustaining, develop business
opportunities, improve access to education and create opportunities
for self-employment and wealth creation.
The Company is listed on the Australian Securities Exchange,
London's AIM market and the Botswana Stock Exchange and is led by
an experienced Board, management and advisory team.
The project is significantly de-risked. The Company produced its
first gas in 2014, has a Mining (or development) Licence valid to
2042 and 10 Prospecting (or exploration) Licences. The Company's
project acreage covers a vast area spanning approximately 9,300
Km(2) in total.
Tlou's 'Lesedi' and 'Mamba' projects already benefit from
significant independently certified 2P gas Reserves of 41 Billion
Cubic Feet (BCF). In addition, 3P gas Reserves of 427 BCF and
Contingent Gas Resources of 3,043 BCF provide significant
additional potential.
The Company is planning an initial scalable power project.
Following successful implementation of this first scalable project,
the Company looks forward to evaluating longer-term prospects for
the delivery of additional electricity to Botswana and to
neighbouring countries.
Forward-Looking Statements
This announcement may contain certain forward-looking
statements. Actual results may differ materially from those
projected or implied in any forward-looking statements. Such
forward-looking information involves risks and uncertainties that
could significantly affect expected results. No representation is
made that any of those statements or forecasts will come to pass or
that any forecast results will be achieved. You are cautioned not
to place any reliance on such statements or forecasts. Those
forward-looking and other statements speak only as at the date of
this announcement. Tlou Energy Limited undertakes no obligation to
update any forward-looking statements.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
STRGRBDGBXDDGGR
(END) Dow Jones Newswires
October 27, 2020 03:35 ET (07:35 GMT)
Tlou Energy (LSE:TLOU)
Historical Stock Chart
From Apr 2024 to May 2024
Tlou Energy (LSE:TLOU)
Historical Stock Chart
From May 2023 to May 2024