Tlou Energy Limited, the AIM and ASX listed company focused on delivering power in Botswana and southern Africa through the development of coal bed methane (“CBM”) natural gas, has been advised that a Mining Licence for the Lesedi CBM project has been granted by Botswana’s Department of Mines in the Ministry of Mineral Resources, Green Technology and Energy Security (“the Ministry”).
Mining Licence Terms
As announced on 21 August 2017, the Company would make a further announcement on the Mining Licence once it had been reviewed. The material terms and information included in the Mining Licence are:
· The Mining Licence has been issued in terms of Section 41 of the Mines and Minerals Act of Botswana;
· The licence grants the holder the right to produce CBM natural gas in the approved Mining Licence area for a term of 25 years commencing on 21 August 2017 and ending on 20 August 2042;
· The Mining Licence was granted in full across the area applied for, which was previously known as Prospecting Licence PL002/2004;
· The licence area is approximately 900Km2;
· An annual licence fee is payable to the office of the Director of Mines of approximately USD$9,000;
· The Government has decided not to exercise its option to take up a shareholding in the project as provided for under Section 40 of the Mines and Minerals Act;
· Project development can commence at any time with no minimum spend stipulated;
· Royalties are payable to the Government of Botswana in accordance with Section 66 of the Mines and Minerals Act. Royalties are currently payable at a rate of 3% of gross market value. Gross market value is defined as the sale value receivable at the mine gate in an arm’s length transaction without discounts, commissions or deductions for the mineral or mineral product on disposal.
Tlou Energy is an AIM and ASX listed company focused on delivering power in Botswana through the development of coal bed methane (“CBM”) gas. Botswana has a severe energy shortage and is currently relying on expensive imported power and diesel generation to deliver its requirements. However, as the 100% owners of the most advanced gas project in the country, the Lesedi CBM Project, Tlou Energy provides investors with access to a compelling immediate and longer-term opportunity using domestic gas to produce power and displace expensive diesel and imported power.
The Company is led by an experienced Board, management and advisory team including individuals with successful track records in the Australian CBM industry.
Since establishment in 2009, the Company has significantly de-risked the project in consideration of its goal to become a significant gas-to-power producer. The Company has the most advanced CBM project in Botswana and flared its first gas in 2014. It holds a Mining Licence and nine Prospecting Licences, covering an area of ~8,300Km2 in total, and the Lesedi Project already benefits from significant independently certified Contingent Gas Resources of ~3.2 trillion cubic feet (3C) and independently certified Gas Reserves.
The Company is planning an initial scalable gas-to-power project in Botswana. Following successful implementation of this first scalable project, the Company plans to expand to provide further power to Botswana and the southern African region.
All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned