Tlou Energy Ltd (AIM:TLOU, ASX:TOU, BSE:TLOU) has raised A$3mln of new equity through a placing of shares to an entity controlled by Dr Ian Campbell, a high net worth investor based in Sydney and a major shareholder in Tlou.
The company, in a statement, said it is issuing 85.7mln new shares to Campbell at a price of 3.5 Australian cents each.
Proceeds are earmarked for use in the development of Tlou’s Lesedi Power Project in Botswana.
It follows a similar placing earlier this month in which Campbell funded the company for A$2mln.
Campbell meanwhile has indicated to the company that he intends to remain a long term strategic investor and has expressed a willingness to potentially provide further financial support to the company, Tlou noted.
Tlou added that further funding could fast track project development including the anticipated high impact drilling campaign scheduled for 2023, and, that work would aim to yield further gas for electricity generation under the Power Purchase Agreement with Botswana Power Corporation.
“Having him as a new and enthusiastic shareholder is very good for Tlou,” said chief executive Anthony Gilby.
“This is a further and significant endorsement of Tlou's Lesedi Power Project in Botswana.
“I am also delighted that Dr Campbell has indicated to the company that he will work with us to secure additional funding aimed at fast-tracking development of the 10MW power project as early as possible."
Campbell will hold a 19.23% interest in the company as a result of the latest equity issue.
The placing price represents a 6.1% premium to Tlou’s closing price on the ASX share price on 10 November.