(Alliance News) - Tlou Energy Ltd on Wednesday announced it has raised GBP2.6 million from a share placing in order to fund the development of the Lesedi power project in Botswana and received tender responses for the construction of the transmission line.
The Botswana and southern Africa focused exploration firm said the placing, which was first announced on Tuesday, was for 75 million shares at an issue price of 3.5 pence per share.
Shares in Tlou Energy were down 23% at 3.60p in London on Wednesday.
Tlou said proceeds will go towards the construction of a 66 kilovolt transmission line to connect the Lesedi project to the existing electricity grid at the town of Serowe, so the company can transition to being a power producer.
"This allows Tlou to commence transmission line construction as soon as possible without the need to wait until the larger development funding negotiations and associated due diligence is complete. We will continue to negotiate the larger funding package and that funding will primarily be directed towards substations and additional generation capacity," said Chief Executive Anthony Gilby.
In addition, Tlou received tender responses on Wednesday for the construction of the transmission line, enabling it to award and sign contracts with the successful tenderer and begin work as soon as possible.
By Zoe Wickens; zoewickens@alliancenews.com
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Tlou Energy (TLOU)