Tlou Energy raises £2.4m, prepares to list in Botswana

Botswana and southern Africa-focussed coalbed methane developer Tlou Energy has entered into conditional subscription agreements with investment funds managed by African Alliance Botswana, a “leading asset manager” based in Botswana, it announced on Monday.

The AIM-traded firm said African Alliance-managed funds would subscribe for approximately 21.2 million new ordinary shares in Tlou at a subscription price of P1.56 (approximately 11p)per share, raising P33m (approximately £2.4m).

It said subscription remained conditional on Tlou listing on the Botswana Stock Exchange, expected to occur around mid-December.

“Securing African Alliance-managed funds as strategic long term and committed local shareholders in Botswana and listing on the BSE is a significant milestone for the company,” said Tlou managing director Tony Gilby.

“Having local shareholders on our register confirms the support for the project from within the Botswana investment community and becoming a Botswana listed entity opens further development funding options to the company.

“Tlou is focussed on building a new industry within Botswana, which will create new employment to support local communities.”