Tlou Energy Ltd - Transmission line and funding update
("Tlou" or "the Company")
Transmission line and funding update
Transmission line detailed design
The Company has engaged
To date a significant amount of work on the transmission line has been completed including:
· Successful definition of transmission line route in consultation with BPC and the relevant land boards;
· Conclusive results from route survey completion, confirmation of line route corridor width and surveying and recording of ground elevation along the route;
· Securing a wayleave (right of way) from the Serowe Substation to the proposed Power Plant; and
· The Environmental and Social Impact Assessment Plan for the project has been completed and the necessary statutory approvals obtained allowing the project to be implemented.
· Detailed design of the 66kV Line, Serowe Extension substation and Power Plant intake substation; and
· Tender document specification including preparation of Pre-qualification (PQ) documents with the objective of Tlou selecting a short-list of pre-qualified bidders who will be invited to bid for construction.
The implementation stage is currently expected to be completed later this year, conditional on not experiencing undue delays outside Tlou's direct control e.g. delays in responses from third parties or further lockdowns imposed by the
Preparation of PQ documents for the 66kV transmission line, feeder bay extension and Power Plant Intake substation
Draft design brief for the above followed by BPC review and approval
Final Design Brief for the 66kV transmission line, feeder bay extension and Power Plant Intake substation
Draft performance specification, schedules and tender drawings for a request for quotes, followed by BPC review and approval
Final performance specification, schedules and tender drawings and updated pricing
Following completion of the above, the Company will request tenders for construction of the transmission line and associated works. Subject to the receipt of acceptable tenders, available funding and on-the-ground access, the Company plans to commence construction as soon as possible thereafter.
The Company is in discussion with potential providers of project finance including the
Simultaneously, several parties both within and external to
Securing this finance is the key objective for the Company at this point in time. Management are focused on getting the best possible deal either with BDC or another party and are also mindful of our shareholder's desire to see progress in the near term.
Tlou Energy MD
The detailed design and engineering work is primarily desktop based and it is very pleasing to see the project coming to life as the technical work progresses. Our recent successful capital raising, strongly supported by our existing shareholders, means that we are fully funded to complete the detailed engineering and design, service corporate overheads and any necessary finance related due diligence costs if required by financiers and upon agreement of terms.
Project finance remains a key objective for the Company and we remain very focused on securing the necessary development funds to enable the construction of transmission lines and development of the power plant at Lesedi. Whilst we have been in advanced discussions with BDC for some time and await a response, shareholders should note that these financing conversations are not exclusive and that there are a number of ongoing positive discussions with other parties as well.
With regards to being able to sell power within
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.
By Authority of the Board of Directors
For further information regarding this announcement please contact:
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+61 7 3012 9793
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+44 (0)20 7383 5100
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Shore Capital (Broker)
+44 (0) 207 408 4090
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In addition to plans for cleaner energy, the Company is also committed to developing community projects in
The Company is listed on the
The project is significantly de-risked. The Company produced its first gas in 2014, has a Mining (or development) Licence valid to 2042 and 10 Prospecting (or exploration) Licences. The Company's project acreage covers a vast area spanning approximately 9,300 Km2 in total.
Tlou's 'Lesedi' and 'Mamba' projects already benefit from significant independently certified 2P gas Reserves of ~41 Billion Cubic Feet (BCF). In addition, 3P gas Reserves of ~427 BCF and Contingent Gas Resources of ~3,043 BCF provide significant additional potential.
The Company is planning an initial scalable power project. Following successful implementation of this first scalable project, the Company looks forward to evaluating longer-term prospects for the delivery of additional electricity to
This announcement may contain certain forward-looking statements. Actual results may differ materially from those projected or implied in any forward-looking statements. Such forward-looking information involves risks and uncertainties that could significantly affect expected results. No representation is made that any of those statements or forecasts will come to pass or that any forecast results will be achieved. You are cautioned not to place any reliance on such statements or forecasts. Those forward-looking and other statements speak only as at the date of this announcement.
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Quick facts: Tlou Energy Limited
Market Cap: £18.38 m
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