Botswana’s Tlou Energy finalises funding for the Lesedi power project

Botswana-based energy developer, Tlou Energy, has announced that it has gotten approval for funding for its Lesedi Power Project, a gas and solar power generation facility, following a recent capital raising.

The Lesedi Power Project is Tlou Energy’s most advanced project

The energy company says the financing deal is at an advanced stage with a very reputable Botswana-based entity. Tlou Energy says they can not name the entity at this due to confidentiality concerns but project financing and are favourably disposed to Tlou’s proposal. A third-party technical review of the project is underway, as part of their due diligence process. Once this report is assessed, an investment decision can be made.

Lesedi Power Project specs

The Lesedi power project is proposed to be developed in two phases. Phase One involves transmission line construction, substations, grid connection, electricity generators and potentially the drilling of additional gas wells. A 100km transmission line will run from the Lesedi project to the town of Serowe where it will connect to the existing power grid. Initial generation is proposed to be up to 2MW of electricity. Funding required for Phase One is US $10m which can be staged if necessary or prudent to do so.

Phase Two funding is for the expansion of electricity generation up to 10MW. This will involve drilling gas wells and the purchase of additional electricity generation assets. The funding required for Phase Two is USD $20m. Upon successful completion of Phase One and Two, the Company plans to expand the project beyond 10MW.

Fund raising

During the quarter, the Company successfully raised gross proceeds of US $3.6m pursuant to the placing of 75,000,000 new shares at an issue price of 3.5 pence per share. The funds raised are planned to go towards commencement of transmission line construction. While this work proceeds, Tlou will also continue its negotiations with other financiers for further development of the Lesedi project.