The money was raised by placing 57,142,857 new ordinary shares of no par value at an issue price of P0.30 per share.
According to Tlou Energy CEO Anthony Gilby, the funds have been raised from a new strategic investor, through an entity controlled by Dr Ian Campbell, a high-net-worth investor based in Sydney, Australia.
“The placement of the New Shares will result in Dr Campbell holding 8.69 percent of the company. Tlou is in the process of negotiating with Dr Campbell for an additional tranche of development capital to fast-track the company’s initial target of 10MW of power generation,” he said.
The total cost of the project is estimated to be the tune of P300 million of which BPOPF has already loaned P50 million to fund the construction of phase one of the project. Lesedi Power project is a two-phase natural gas extraction initiative that would seek to allow the nation to be able to exploit the energy potential sitting in the Lesedi coalbed methane (CBM) fields to create greater energy production independence for Botswana.
The first phase of the project involves the drilling of six natural gas wells, the construction of the 100km transmission line to Serowe, the construction of substations, grid connections, and an electricity generator to produce two megawatts of electricity.
Zismo Engineering, which has been contracted, has stated that the first stage of development will be the erection of wooden poles fitted with an overhead 66kV transmission line, capable of supplying up to 25MW of power into the grid; possibly indicating expansive ambitions beyond the 10MW production Tlou has been approved for.
The line will commence from the Lesedi fields and run across 100km until branching off to a further five-kilometre line that will connect the fields directly to the BPC grid.
It is estimated the construction will take roughly 15 months. Upon completion, the second phase of the project will involve ramping up production to 10MW of electricity with the drilling of more natural gas wells and the purchase of more electricity generation equipment.
Tlou Energy also teased the idea of exploring renewable green energy sources in future once the Lesedi Power Project is complete.
