Botala Energy Ltd (ASX:BTE) has raised A$1.87 million at A$0.056 per share as part of a two-tranche placement, which it will use to commission Project Pitse in Botswana, start a bankable feasibility study (BFS) and for research and development of renewables projects.
The placement received strong support from new and existing institutional and sophisticated investors, while the board is set to participate to the tune of A$315,000, subject to shareholder approval.
The issue price of A$0.056 per share represents a 22% discount to the 15-day Volume Weighted Average Price (VWAP) of A$0.072 per share and around 33.6 million new shares will be issued.
New shares (excluding those for the board) are expected to be issued around October 28, 2024.
Use of funds
The money raised will be allocated to commission Project Pitse and commence a BFS, focusing on liquefied natural gas (LNG) for the Johannesburg market.
Botala Energy chief executive officer Kris Martinick said, “It is fantastic to see the strong support shown by our existing investors and new investors for our projects.
"Management and the Botala board have strongly backed this raising.
"We believe in the project and are excited with ongoing negotiations. The funds secured position the company to focus on securing a strategic development partner and target commercial offtake agreements.”
Pedal to the metal
Botala has been busy in the last couple of months and just a couple of weeks ago received approval from the Department of Environmental Protection to move forward with the commercial development of its Serowe Energy Hub, located centrally in Serowe village, Botswana.
The development will include:
- Liquefied Natural Gas (LNG) storage and distribution facilities;
- A 24-megawatt (MW) solar/gas hybrid power plant, including a 4MW solar tender to supply the local grid;
- Service and storage facilities;
- A small market gardening area.
The company also welcomed an independent wellfield feasibility study outlining development options for the Serowe Coal Bed Methane (CBM) Gas Project, with modelling of development options, risks and costs confirming the commercial potential of using gas to generate electricity and especially to produce LNG.