Tlou Energy Limited (LON:TLOU) told investors it is bringing in A$800,000 of new capital through its share purchase plan (SPP), and it will separately raise a further A$700,000 after additional requests for new shares.
The Botswana focussed coal bed methane (CBM) group in March raised A$5.2mln (£3.1mln) of new capital through a share placing, issuing 5.178mln new shares priced at 10 Australian cents (6p).
Subsequently, through the SPP is offered existing shareholders the opportunity to buy shares on the same terms – it received acceptances for 8.7mln new shares – and it has now highlighted additional demand from UK based investors which will take 6.78mln new shares.
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Cash proceeds, totalling A$6.7mln, are earmarked for field appraisal activities, with the aim of expanding the group’s gas reserves as well as efforts to finalise licensing requirements ahead of a development of its Lesedi CBM project.
Money will be spent on new 2D seismic data for areas deemed to be highly prospective, and the company also plans to drill a limited number of new vertical wells (down to 500 metres) to gather core for analysis.
It will also pay for the completion of various studies, for both upstream and downstream elements of the project, which will form part of the application for a mining licence and tender for the Botswana Government’s pilot CBM project.
Proceeds will also support working capital and corporate costs, Tlou added.