Tlou Energy Limited (LON:TLOU) has confirmed some of the material details of its recently awarded mining licence that will allow it to advance its coal bed methane project in Botswana.
It told investors in a statement that the licence was issued in terms of Section 41 of the Mines and Minerals Act. It was granted in full for an area previously referred to as Prospecting Licence PL002/2004 (spanning about 900 square kilometres and it has a term of 25 years (with a licence fee of US$9,000).
WATCH: New mining licence in Botswana de-risks Tlou Energy's CBM project
Project development can start at any time with no minimum spend obligation, the company added.
Tlou noted that royalties are payable to the Government of Botswana, at a rate of 3% gross market value (defined as the sale value receivable at the mine gate in an arm's length transaction without discounts, commissions or deductions for the mineral or mineral product on disposal).
The company told investors that it will provide a further announcement once the full documentation has been received.