Tlou Energy said it had agreed on a conversion price with the Botswana Public Officers Pension Fund (BPOPF) for the loan note for Lesedi, releasing the funds to move ahead with the project.
Should BPOPF convert the note, the company will issue a maximum of 115,772,900 shares, it said in a statement.
The announcement came alongside a half-year update, a period during which Tlou said it delivered all of the important targets it had been speaking about 'for many years'.
Namely, this meant signing the 10Mw power purchase agreement with BPC, a first in Botswana, and securing funding to start the development of the Lesedi power project.
In a statement alongside the figures, Tlou added that Lesedi was just the start with “ the potential to develop this project into hundreds of MW's of power with our existing independently certified gas reserves and contingent resources. The potential opportunity is enormous
“Our results for the half-year were in line with expectations. Importantly, we now have funding that allows us to progress the development of the Lesedi project. During the period we were delighted to get our field operations back to normal post-pandemic.”
Losses for the six months to end December 2021 were US$1.27mln (US$1.07mln) with cash and equivalents of US$4.29mln at the period end.