ASX-listed power solutions developer Tlou Energy says it has received firm commitments to raise AUD3mn ($2.03mn, BWP26.485mn) for the development of its Lesedi power project in Botswana via a placing of 87,796,135 new ordinary shares of no-par value.

Most of the funds will be raised through IC Australia, an entity controlled by Ian Campbell, a high net worth investor based in Sydney, who invested AUD2mn and a further AUD3mn in separate share issues in November and has now agreed to subscribe for 71,428,571 new shares at a cost AUD2.5mn.

The funds are proposed to be used for the drilling of gas production wells and associated costs in relation to the development of the Tlou project, the triple-listed (ASX, AIM, BSE) energy company said in a statement on December 15.

The issue of the new shares is subject to shareholder approval, to be sought at a general meeting in January 2023. If approved, the placement will result in IC Australia holding 214,285,714 ordinary shares representing 25.79% of the company.

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