TIDMTLOU
RNS Number : 4314A
Tlou Energy Ltd
24 March 2017
24 March 2017
Tlou Energy Limited
("Tlou" or "the Company")
Tlou completes equity placement to raise A$5.2 million (GBP3.1
million) and announces a Share Purchase Plan to Australian
registered shareholders
Key Points:
-- Placement completed raising A$5.2 million (GBP3.1 million)
which was well supported by new investors and existing
shareholders;
-- Funding will be used to undertake additional field appraisal
to expand Tlou's independent gas Reserves and to finalise licencing
requirements prior to development of the Lesedi CBM Project;
and
-- Eligible shareholders on the Australian register on 24 March
2017 are invited to participate in a Share Purchase Plan to acquire
up to A$15,000 per applicant.
Tlou Energy Limited, the AIM and ASX listed company focused on
delivering power in Botswana and Southern Africa through the
development of coal bed methane ('CBM') projects, is pleased to
announce the successful completion of a A$5.2 million
(approximately GBP3.1 million) placement of new ordinary shares
('Placement').
Placement
The Placement comprises the issue of 51,788,334 new ordinary
shares (representing 17.9% of enlarged share capital) at an issue
price of A$0.10 or GBP0.06 per share to sophisticated and
professional investors in Australia and the United Kingdom. The
Placement shares will rank equally with Tlou's existing shares on
issue.
The proceeds of the Placement, along with existing cash, will be
applied by Tlou for the following:
-- acquisition and interpretation of new 2D seismic data in
areas considered to be highly prospective for additional Reserves
by Tlou's reserve certifiers;
-- drilling a limited number of vertical (cored) wells along the
new seismic lines (with geophysical logging and coal core gas
sampling) to a depth of approximately 500 metres;
-- completing various studies (upstream and downstream) required
for the submission of the mining licence application and tender for
the Botswana Government's 100 MW CBM pilot project;
-- on-going production testing at Selemo, including installing
gas engines to run the pumps on the existing wells;
-- costs of the Placement; and
-- working capital for its Lesedi CBM Project and corporate costs.
The objective of the work program above is to expand the
Company's independently certified gas Reserves and complete the
licencing requirements prior to commencing development of the
Lesedi CBM Project.
The Placement price represents a discount range of 12% - 19% to
the 10-day volume weighted average price for Tlou's shares traded
on the ASX and AIM markets.
The Placement shares will be issued within Tlou's existing
placement capacity and as such, shareholder approval will not be
required.
Application will be made for the admission of the Placement
Shares to trading on ASX and AIM, with admission to trading on AIM
expected to occur at 8.00 a.m. on 7 April 2017 (London time) and
ASX quotation on 6 April 2017. The timetable for the Placement is
set out in further detail on the following page.
Tlou's Managing Director, Mr Tony Gilby commented, "This
Placement along with the recently announced agreement with
Independent Power Corporation PLC provides significant momentum for
Tlou to progress the upstream (gas field) and downstream (power and
transmission) components of the Lesedi CBM Project with the
objective of supplying the first gas-fired power in Botswana. We
were very pleased with the introduction of a number of new
investors to the Company along with continued support from existing
shareholders in Australia and the UK".
The Placement was managed by Shore Capital Stockbrokers Limited
and Optiva Securities Limited in the United Kingdom and Taylor
Collison Limited in Australia.
Following Admission of the Placement Shares, the total number of
voting rights of the Company's ordinary shares will be 288,986,573.
This figure of 288,986,573 ordinary shares may be used by
shareholders in the Company as the denominator for the calculations
by which they will determine if they are required to notify their
interest in, or a change in their interest in, the share capital of
the Company under the FCA's Disclosure and Transparency Rules.
Share Purchase Plan
Tlou is offering existing eligible shareholders the opportunity
to participate in a Share Purchase Plan ("SPP") to raise up to a
further A$2 million at the same issue price as the Placement. Funds
raised from the SPP will be applied to working capital and Lesedi
work program costs.
Eligible shareholders recorded on the Australian register at
7.00pm (AEDT) on 24 March 2017 with a registered address in
Australia, New Zealand or United Kingdom will be entitled to apply
for new shares with a minimum investment of A$1,000 and up to a
maximum investment of A$15,000 free of brokerage and other related
transaction costs.
Participation in the SPP is entirely optional and is open to
eligible shareholders other than shareholders who have registered
addresses in countries outside Australia where regulatory
requirements make participation by the shareholder unlawful or
impracticable. The Directors have determined that shareholders
whose registered addresses are outside Australia, New Zealand or
United Kingdom and the holders of Depository Interests will be
unable to participate in the SPP.
The Company will apply for quotation of the new SPP Shares on
ASX and AIM, which will rank equally in all respects with existing
Tlou fully paid ordinary shares.
Tlou may, in its absolute discretion, allocate less than the
number of shares applied for and determine to apply the scale back
to the extent and in the manner that it sees fit. Any unallocated
funds will be returned to applicants without interest in this
case.
ASX Trading Halt
The Company entered into a trading halt prior to the
commencement of trading on the ASX on 24 March 2017 pending
announcement of the Placement. Trading of the shares of the Company
is expected to re-commence on ASX prior to 10.00am AEDT on Monday,
27 March 2017.
Timetable
The Placement and indicative SPP timetable is shown below. An
SPP Offer Booklet and Acceptance Form will be sent to eligible
shareholders on 28 March 2017.
Record Date for participation in 24 March 2017
the SPP (7.00pm AEDT)
----------------------------------- --------------
SPP offer to eligible shareholders 28 March 2017
opens
----------------------------------- --------------
Settlement of Placement shares 3 April 2017
on ASX via DvP on CHESS
----------------------------------- --------------
Settlement of Placement shares 7 April 2017
on AIM via CREST
----------------------------------- --------------
SPP offer closes (unless extended 13 April 2017
by the Company)
----------------------------------- --------------
Allotment and quotation of new 20 April 2017
shares under the SPP
----------------------------------- --------------
Dispatch of holding statements 21 April 2017
for SPP shares
----------------------------------- --------------
The above timetable is indicative only and subject to change.
Tlou reserves the right to extend the closing date for the SPP, to
accept late applications or to withdraw the SPP without prior
notice. The commencement of quotation of new Shares is subject to
confirmation from the ASX.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
For further information regarding this announcement please
contact:
Tlou Energy Limited +61 7 3012 9793
--------------------------------------- ---------------------
Tony Gilby, Managing Director
--------------------------------------- ---------------------
Solomon Rowland, Company Secretary
--------------------------------------- ---------------------
Grant Thornton (Nominated
Adviser) +44 (0)20 7383 5100
--------------------------------------- ---------------------
Samantha Harrison, Colin Aaronson,
Harrison Clarke
--------------------------------------- ---------------------
+44 (0) 207 408
Shore Capital (Joint Broker) 4090
--------------------------------------- ---------------------
Jerry Keen, Mark Percy, Toby
Gibbs
--------------------------------------- ---------------------
Optiva Securities Limited
(Joint Broker) +44 (0)20 3137 1904
--------------------------------------- ---------------------
Jeremy King, Christian Dennis
--------------------------------------- ---------------------
St Brides Partners Limited +44 (0) 20 7236
(Public Relations) 1177
--------------------------------------- ---------------------
Elisabeth Cowell, Lottie Brocklehurst
--------------------------------------- ---------------------
FlowComms Limited (Investor +44 (0) 7891 677
Relations) 441
--------------------------------------- ---------------------
Sasha Sethi
--------------------------------------- ---------------------
Company Information
Tlou Energy is an AIM and ASX listed company focused on
delivering power in Botswana through the development of coal bed
methane ('CBM') projects. Botswana has a severe energy shortage and
is currently relying on expensive imported power and diesel
generation to deliver its requirements. However, as the 100% owners
of the most advanced gas project in the country, the Lesedi CBM
Project, Tlou Energy provides investors with access to a compelling
immediate and longer term opportunity using domestic gas to produce
power and displace the expensive diesel and import market.
The Company is led by an experienced Board, management and
advisory team including individuals with successful track records
in the Australian CBM industry.
Since establishment in 2009 the Company has significantly
de-risked the project in consideration of its goal to become a
significant gas to power producer. The Company has the most
advanced CBM project in Botswana and flared its first gas in 2014.
It holds 10 Prospecting Licences covering an area of 8,300Km2 and
the Lesedi Project already benefits from significant, independently
certified Contingent Gas Resources of 3.2 trillion cubic feet (3C)
and independently certified Gas Reserves.
The Company is planning an initial scalable gas-to-power project
in Botswana. Following successful implementation of this first
scalable project, the Company plans to expand to provide further
power to Botswana and the southern African region.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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