Botala Energy Ltd (ASX:BTE) has acquired the remaining 30% interest in Sharpay, the owner of the Serowe CBM Project In Botswana, from Pure Hydrogen Corporation (Pure Hydrogen Corporation Limited (ASX:PH2)), making Botala the sole owner.
The move consolidates Botala’s asset base in Botswana, enhancing its operational control and potential revenue from the project.
Sole ownership of the project also opens greater opportunities for engagement with prospective strategic partners as Botala advances towards development.
In addition to the acquisition, Botala has signed a memorandum of understanding (MoU) with Pure Hydrogen to jointly investigate hydrogen projects in Southern Africa.
Focused on core strengths
“This acquisition comes at an ideal time as we continue to advance the pilot project with the aim to convert to a commercial development upon success,” Botala Energy CEO Kris Martinick said.
“PH2 has been an amazing partner from providing support in our IPO through to technical support and reviews of the exploration and appraisal programs.
“However, we have now come to a rational separation point for PH2 allowing both companies to focus on their core strengths and objectives.
“Owning the project outright allows us to negotiate with potential partners for the next growth step in the project’s development.”
Botala will issue 14.5 million shares to Pure Hydrogen in two tranches in return for the 30% interest in Serowe, as well as a milestone payment of $750,000 contingent on agreed reserve certifications.
Hydrogen MoU
Botala and Pure Hydrogen have agreed to jointly work towards establishing a hydrogen and renewables joint venture to manufacture, store, market and distribute hydrogen and renewable energy in Southern Africa, based in Botswana.
The agreed steps are:
- Phase 1 – design, finance and build an electrolyser Micro Hub as a commercial demonstration of a standalone H2 manufacturing and filling station.
- Phase 2 – to design, finance and build the core of a hydrogen highway for the region.
- Supply commencement – first production of commercial production of hydrogen.
“Converting our 30% interest in Serowe into an increased shareholding in Botala strengthens our equity interest in what is an excellent company and allows us to simplify our activities and focus our efforts and funding commitments to our hydrogen business including Hdrive,” Pure Hydrogen CEO Scott Brown said.
“We have effectively minimised and limited our funding for this project but still maintained an upside exposure to the Serowe Project through our shareholding in Botala.
“We are excited by the rapid development of Botswana H2. We can very readily bring the best technologies to the joint venture in terms of hydrogen fuel production and all the associated transport infrastructure to develop the full value chain from fuel, refuelling infrastructure and commercial vehicles.
“Botswana is strategically located in Africa and it is a great market to commence our operations here, underpinned by a government committed to developing clean energy projects. We will update shareholders on the JV’s progress as key events materialise.”