on Monday told investors it has been selected as a preferred bidder for the Development of a Coal Bed Methane Fuelled Power Plant in Botswana.
The tender approval is a major milestone for the company that first submitted the request for proposal in October 2018.
The submission outlined project feasibility, proposed field development, as well as the installation of power generation facilities and supply of power into the grid in Botswana.
Shares were trading 23% higher at 8.55p a share after the news
Tlou's Managing Director, Mr Tony Gilby said, "The approval of the Company's tender represents great progress for Tlou. The proposal that we submitted was very competitive and we welcome this decision by the Government.”
“We look forward to working together to deliver a successful power project. The effort put in by our team over recent years has been phenomenal and this result makes it all worthwhile.”
“The Company will now progress with additional work on the ground to deliver a Gas-to-Power solution that can bring significant benefits to the country and to our shareholders. I look forward to updating the market as we continue to develop the project."
Tlou told investors it has zero debt, a cash balance of AUD $6.5 million, being “well funded” through to the second half of 2020.
The company plans to carry out drilling and seismic activities to increase potential existing Gas Reserves.
It said downstream funding will be needed to develop transmission lines to transmit over 20MW of electricity from the proposed power generation facility to the Serowe sub-station.
But the company told investors it has already received indications of funding support from a number of existing strategic investors as well as from Botswana Development Corporation.
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