1st Mar 2021 12:20
Tlou Energy Ltd - seeking to use gas and solar to alleviate some of the chronic power shortage in Botswana and southern Africa - Says advanced project finance discussions are currently taking place with an unnamed "very reputable Botswana based entity" over the Lesedi power project in Botswana. Tlou is seeking project finance to built a transmission line from the project to the existing electrical grid, as well as electrical sub-stations, gas and solar assets. The undisclosed Botswana company's board "have discussed and are favourably disposed to Tlou's proposal" and are now pursuing a third-party technical review of the project under due diligence. An investment decision can be made once the report is assessed. Funding for phase 1 at Lesedi will be approximately USD10 million, while phase 2 funding amounts to around USD20 million.
Tlou further notes that is has received correspondence from advisors, who are assisting Botswana's government in executing their coal bed methane programme for developing of CBM-fuelled pilot power plants.
Tlou says: "This is a positive development with further discussions planned this week. The company aims to progress this matter as quickly as possible."
Current stock price: 3.70 pence; up 19% on Monday
Year-to-date change: up 28%
By Anna Farley; [email protected]
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