THE BOURSE WHISPERER: Tlou Energy (AX: TOU) has been granted a Mining Licence for the company’s Lesedi coal bed methane (CBM) project in Botswana by the Department of Mines in the Ministry of Mineral Resources, Green Technology and Energy Security.
Tlou Energy is an AIM and ASX-listed company focused on delivering power in Botswana and southern Africa through the development of coal bed methane.
The Mining Licence for the Lesedi CBM Project was the first application of its kind to be lodged in Botswana,” Tlou Energy managing director Tony Gilby said in the company’s announcement to the Australian Securities Exchange.
“The awarding of the Mining Licence by the Ministry is a major milestone for the company, further de-risks the project, and is an important prerequisite to developing the first commercial gas-to-power project in the country.
“The issue of a Mining Licence will pioneer the development of a new and exciting natural CBM gas industry in Botswana, an industry that will lead to a new indigenous source of energy, income and employment for the country.
“Having been granted a Mining Licence will also further enhance our proposal for the Botswana Government sanctioned CBM fuelled pilot power project which is due to be submitted later in the week.”
Tlou Energy explained that in Botswana, holders of Prospecting Licences (PL) are issued Mining Licences once exploration on a relevant Prospecting Licence has been concluded and the holder of the Prospecting Licence is ready to commence commercial production.
The company anticipates receiving notification from the Ministry that it has been granted a licence over the area applied for, at which time it will make a further announcement containing material terms of the licence.
Tlou Energy has also submitted renewal applications for the Mamba project licences.
The Mamba project consists of five CBM prospecting licences in Botswana covering an area of approximately 4,500 square kilometres the company considers to be highly prospective, as it is situated adjacent to the Lesedi CBM project and on-trend with the results observed to date.
The company has received confirmation from the Ministry that the licences have been extended for a period of three months whilst it completes a review of Tlou’s renewal application for a further period of two years.