Botala Energy Ltd (ASX: BTE) has successfully secured firm commitments to raise A$1,250,000 through a placement of new shares. The funds will be directed towards continued flow-testing at Project Pitse, expansion of the exploration and appraisal program, and advancing the Bankable Feasibility Study for its Serowe Coal Bed Methane (CBM) project. The placement involves issuing approximately 21.2 million new shares at A$0.059 each, representing an 11% discount to the last traded price of A$0.066. Botala’s board intends to participate in the placement for A$765,000, pending shareholder approval. Approximately 8.2 million New Shares will be issued under Botala’s remaining capacity under Listing Rule 7.1 and approximately 13 million additional New Shares will be issued on the same terms to members of the Board (or their respective nominees) subject to the receipt of shareholder approval to be sought at a General Meeting of Botala.
According to CEO Kris Martinick, the capital raise demonstrates support for the Serowe CBM Project, particularly following a successful March quarter. The company remains focused on the CBM Pilot Programme, which is targeting commercial LNG production, securing strategic development partners, and additional offtake agreements. Palomar Advisory Pty Ltd acted as the lead manager for the placement.
The raised capital will specifically support the production of Liquified Natural Gas (LNG) targeting the Greater Johannesburg market. This strategic focus aligns with Botala’s objective to commercialize the Serowe CBM Project, addressing the demand for a stable power supply in Botswana and Southern Africa. The company is also listed on the Botswana Stock Exchange, highlighting its commitment to the region. The company expects the issue of New Shares under the Placement (excluding shares to the Board which as set out above will be subject to shareholder approval) to occur on or around 28 April 2025.
