Coal bed methane projects developer Tlou Energy Ltd (LON:TLOU, ASX:TOU) has a new cornerstone investor in asset manager African Alliance Botswana.
Funds managed by African Alliance have agreed to subscribe for roughly 21.2mln new Tlou shares at about 11p or 20 Australian cents a share.
Tlou shares currently trade at A$0.22 in Australia and 13.90p (up 0.4p) in London.
The subscription agreement will raise roughly £2.4mln or A$4.1mln for Tlou.
The subscription agreement is conditional on Tlou shares listing on the Botswana Stock Exchange (BSE). Tlou said it expects to get a BSE listing round about the middle of next month.
"Securing African Alliance managed funds as strategic long term and committed local shareholders in Botswana and listing on the BSE is a significant milestone for the company,” said Tony Gilby, managing director of Tlou.
“Having local shareholders on our register confirms the support for the project from within the Botswana investment community and becoming a Botswana listed entity opens further development funding options to the company. Tlou is focussed on building a new industry within Botswana, which will create new employment to support local communities," he added.