Tlou Energy announces A$3m placement for development of Lesedi Power Project in Botswana
20-12-2022 08:15:00 | by: Pie Kamau | hits: 12128 | Tags:

Tlou Energy announced it has received firm commitments to raise A$3,072,864.71 (~£1.695 million), before expenses pursuant to a placing of 87,796,135 new ordinary shares of no par value (Ordinary Shares) at an issue price of A$0.035 (~£0.02) per share (New Shares).

The funds will be raised through IC Australia (No2) Pty Ltd an entity controlled by Dr Ian Campbell (who invested A$2 million on 4 November 2022 and a further A$3m on 11 November 2022) who has agreed to subscribe for 71,428,571 New Shares at a cost of A$2.5m; new investors introduced to the Company by Dr Ian Campbell (who are sophisticated or otherwise exempt from disclosure under Section 708 of the Corporations Act); certain Directors of the Company details of whose subscriptions are outlined below; and management and consultants associated with the Company.

The funds are proposed to be used for drilling of gas production wells and associated costs in relation to development of Tlou's Lesedi Power Project in Botswana. The issue of the New Shares is subject to shareholder approval, to be sought at a general meeting to be held in January 2023. If approved, the placement of the New Shares will result in IC Australia (No2) Pty Ltd holding 214,285,714 Ordinary Shares representing 25.79% of the Company. As announced on 4 November 2022, Dr Campbell has the right to nominate one director to the board of the Company subject to any regulatory requirements. To date, no such nomination has been made.

Anthony Gilby, Chief Executive Officer of Tlou: "We welcome the further investment from Dr Campbell as well as that from the investors he has introduced to the Company and we thank them for their support. This additional investment is an endorsement of the progress being made and will assist the Company to meet our objectives. These new funds are planned to go towards drilling a new gas production pod in 1H23."