27th Oct 2020 10:41
(Alliance News) - Shares dropped in Tlou Energy Ltd on Tuesday as it continues to seek funding for the Lesedi power project in Botswana.
Shares in the power producer were 15% lower at 3.65 pence on Tuesday in London.
Tlou said it is looking to develop the project in two phases. The first phase involves transmission line construction, transformers, grid connection, electricity generators, and potentially the drilling of additional gas wells, and requires up to USD10 million in funding.
The second phase is for the expansion of electricity generation from 2 megawatts in the first phase to 10 megawatts, through the drilling of additional gas wells and purchasing of more electricity generators. This is expected to require USD20 million in funding.
Tlou noted that funding discussions mainly related to phase one have progressed well. It said the discussions are with institutions focused on infrastructure development in Botswana and with other focused on clean energy. In particular, discussions with Botswana Development Corp for an investment have been taking place for several months, Tlou said, adding that BDC is seeking internal investment approval.
More recently, the company has received an indicative term sheet for transmission line and transformer funding from an unnamed new potential funder. Tlou will assess the offer alongside the other potential investors to find "the best possible option and funding partner going forward".
By Dayo Laniyan; [email protected]
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