logo-loader
viewAfrican Energy Resources (Guernsey) Ltd.

African Energy Resources to raise funds, Sentient to 19.9%

african_energy__botswana_358_534b7518c024a.jpg

African Energy Resources (ASX: AFR) is raising up to $4.5 million through a placement and a non-renounceable entitlement to advance its portfolio of coal and power projects in Botswana.

The potential of the company has not been lost on its major shareholder Sentient Executive GP IV, which will acquire 14.9 million shares in the placement to take their ownership to a 19.9% stake.

The capital raising will comprise a $1.5 million placement, and a $3 million non-renounceable entitlement, priced at $0.085 per share.

Funds raised will advance AFR's portfolio of coal and power projects in Botswana.

The Sentient Group manages over US$2.7 billion in the development of metal, mineral and energy assets across the globe.

The AFR directors are also showing their support, with entities associated with them agreeing to purchase 2.4 million shares in the placement.


Non-renounceable rights issue


Eligible shareholders will be given the opportunity to participate in the capital raising on the same terms as the placement via a non-renounceable rights issue, and will be able to participate in a shortfall facility and apply for new shares in excess of their pro rata entitlements under the rights issue.


Sese power project DFS and environmental assessment

Last month AFR said that it soon expects to finalise the Environmental and Social Impact Assessment and Phase 1 of the Definitive Feasibility Study for a 300 megawatt power station and captive 1.5 million tonne per annum coal mine at its Sese Coal project in Botswana.

Sese hosts 2.5 billion tonnes of coal, enough to support multiple 300MW projects for regional power.

Upon completion, it will submit a mining licence application covering enough coal for the full life of the 300MW Sese Integrated Power Project.

It also reiterated at the time that its consortium with Saudi Arabia incorporated company ACWA Power International have been shortlisted to submit a bid for the 300MW Greenfield Power Project.

Highlighting the financial strength of ACWA, it has paid-up capital of around US$1.4 billion - and is owned by eight Saudi conglomerates.

An advantage of Sese is that it is close to existing transmission grid and planned grid extensions, and is matched to power markets in Botswana and neighbouring countries.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

Quick facts: African Energy Resources (Guernsey) Ltd.

Price: 0.014 AUD

ASX:AFR
Market: ASX
Market Cap: $8.77 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Proactive Research analyst Ryan Long talks tin and the differing types of...

Proactive Research analyst Ryan Long lifts the lid on tin, a metal which he says doesn’t get too much attention from investors but is likely to be incredibly significant to the Energy Transition. Tin's an important metal used in longstanding industrial products such as tin solder, tin based...

8 hours, 35 minutes ago

3 min read