A meeting is now due to take place with the Botswana government on 9 August, ahead of a submission deadline of September 12.
In Friday’s early deals, Tlou shares rose 6.86% changing hands at 6.2p.
The government has requested the re-tender for the proposed development of up to 100MW of CBM fuelled power plants, following on from a prior process which was shelved.
Tlou highlighted that its proposal outlined a staged development commencing with up to 10MW of generation as well as outlining project feasibility, proposed field development, installation of power generation facilities and supply of power into the grid in Botswana.
Moreover, the company described its asset as ‘the most advanced CBM project in Botswana’ and highlighted the project’s qualities – namely gas reserves, environmental approval for upstream development, and licensing.
In a stock market statement, it said: “the company is very pleased to receive the re-tender document and will now undertake a compressive review of the terms therein.”
Craig Howie, analyst at Shore Capital, in a note this morning added: “We are now very encouraged to see the formal re-tender process moving ahead and believe that Tlou is superbly positioned in this regard, given the advanced nature of its flagship Lesedi CBM project in Botswana.
He added: “Our fair value estimate stands at approximately 25p/share and, with the formal government re-tender process now underway, we continue to see excellent scope for Tlou to become a leading Southern African-focused independent power producer.”