Tlou Energy announces proposed placing to raise GBP 2.6 million
Tlou Energy, an ASX, AIM and BSE listed company focused on generating cleaner power in Botswana and southern Africa using gas and solar power, has announced its intention to undertake an equity placement of £2.6 million. The Placing will be conducted through an accelerated bookbuild process which will be launched immediately following this announcement with a price of 3.5 pence.
The Placing Shares are not being made available to the public. It is envisaged that the Bookbuild will be closed no later than 6.00 p.m. today, 16 March 2021. Details of the number of Placing Shares and the approximate gross proceeds of the Placing will be announced as soon as practicable after the closing of the Bookbuild. The Placing is not underwritten and Shore Capital is acting as sole bookrunner in connection with the Placing.
Use of Funds
The net proceeds of the Placing, along with existing cash, will mainly be applied by Tlou towards:
- Construction of a 66kV transmission line from the Company’s Lesedi project to the existing electricity grid at Serowe, Botswana; and
- Field operating costs and ancillary equipment
The Company plans to commence work as soon as possible on the transmission line following award of tenders for the construction of overhead transmission lines and sub-stations. The Environmental and Social Impact Assessment for the line has been completed as well as route alignment and associated surveys.
Funds will also be used to cover working capital requirements including general and administrative costs across the Company’s three stock exchange listings on ASX, AIM and BSE. The timing and execution of activities proposed to make use of the funds raised may be impacted by Covid-19 pandemic restrictions.
The above is a statement of the Board’s current intentions as at the date of this announcement. However, Shareholders should note that, as with any budget, the allocation of funds set out above may change depending on a number of factors, including the outcome of operational and development activities, regulatory developments, market and general economic conditions and environmental factors. In light of this, the Board reserves the right to alter the way the funds are applied.
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