Tlou Energy Ltd (LON:TLOU) has landed a mining licence in Botswana, allowing it to advance the Lesedi coalbed methane gas project.
The company told investors that the licence gives it tenure over the project area, some 900 square kilometres that had previously been designated as prospecting licence PL002/2004.
It marks a transition for the project, into the development phase from exploration and appraisal.
Tony Gilby, Tlou managing director, in a statement said: “The mining licence for the Lesedi CBM project was the first application of its kind to be lodged in Botswana.
“The awarding of the Mining Licence by the ministry is a major milestone for the company, further de-risks the project, and is an important prerequisite to developing the first commercial gas-to-power project in the country.
“The issue of a mining licence will pioneer the development of a new and exciting natural CBM gas industry in Botswana, an industry that will lead to a new indigenous source of energy, income and employment for the country.”
Gilby added that the licence also enhances the group’s proposal for the Botswana Government sanctioned CBM fuelled pilot power project, which he said is due to be submitted later this week.