Botala Energy Secures P30 Million Placement to Advance Serowe-3.5B Well

Botala Energy Secures P30 Million Placement to Advance Serowe-3.5B Well. Botala Energy Ltd has announced that it has secured firm commitments from sophisticated investors to raise A$3 million, equivalent to approximately P30 million, through a placement of new fully paid ordinary shares.

The placement will be completed at an issue price of A$0.05 per share, before associated costs. According to the company, the funds will be directed towards advancing its Serowe-3.5B project and other key corporate activities.

Botala Energy said the capital raised will be used to drill and stimulate Serowe-3.5B, which has been identified as the company’s first targeted commercial production well. Drilling and flow testing at the site are scheduled to commence during the current quarter. Additional funding will support the company’s maiden reserve certification and further progress on its Bankable Feasibility Study.

The company also stated that a portion of the funds will be allocated towards finalising discussions with the Minerals Development Company of Botswana regarding its proposed non-binding project investment of A$4 million. The remaining funds will be applied to general working capital requirements and expenses associated with the offer.

Under the placement, approximately 60 million new shares will be issued. Of these, around 23.6 million shares will be issued under the company’s ASX Listing Rule 7.1 capacity, while approximately 12.2 million shares will be issued under Listing Rule 7.1A.

In addition to the shares, investors participating in the placement will receive one new unlisted option for every two new shares acquired. These options will be exercisable at A$0.10 and will carry a two-year expiry period. Around 17.9 million new options will be issued under ASX Listing Rule 7.1.

Botala Energy also confirmed that approximately 2.5 million new options will be issued to the Lead Manager as part of the transaction.

The company said the placement provides funding to advance its near-term operational and development objectives.