- Tlou Energy Ltd has successfully raised a A$5.2m in a placement of 51.8m new shares at A$0.10 each, with proceeds being used for a variety of purposes as the company also unveiled a share purchase plan.

"This Placement along with the recently announced agreement with Independent Power Corporation PLC provides significant momentum for Tlou to progress the upstream (gas field) and downstream (power and transmission) components of the Lesedi CBM Project with the objective of supplying the first gas-fired power in Botswana," said managing director Tony Gilby.

"We were very pleased with the introduction of a number of new investors to the Company along with continued support from existing shareholders in Australia and the UK".

Meantime, Tlou was offering a share purchase plan (SPP) to eligible shareholders to raise up to a further A$2m, at the same issue price as the placement.

Funds raised from the SPP would be applied to working capital and Lesedi work program costs.

Returning to the placement, Tlou outlined in more detail the use of the proceeds:

- acquisition and interpretation of new 2D seismic data in areas considered to be highly prospective for additional Reserves by Tlou's reserve certifiers;

- drilling a limited number of vertical (cored) wells along the new seismic lines (with geophysical logging and coal core gas sampling) to a depth of approximately 500 metres;

- completing various studies (upstream and downstream) required for the submission of the mining licence application and tender for the Botswana Government's 100 MW CBM pilot project;

- on-going production testing at Selemo, including installing gas engines to run the pumps on the existing wells;

- costs of the Placement; and

- working capital for its Lesedi CBM Project and corporate costs.

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