By: Creamer media

The funds raised will support several key initiatives. These include continuing the testing of gas flow rates at Project Pitse, in Botswana; expanding the company’s exploration and evaluation activities; and progressing to the next phase of a detailed study aimed at producing liquefied natural gas (LNG) for the greater Johannesburg area.

Corporate and equity capital markets advisory services firm Palomar Advisory has acted as the lead manager for this capital raising.

About 21.2-million new shares will be issued through this placement. Of these, 8.2-million shares will be issued under Botala’s remaining capacity. An additional 13-million shares will be issued on the same terms to board members or their nominees, but this portion is subject to shareholder approval, which will be sought at an upcoming general meeting.

The issue of the new shares, excluding those to be issued to the board, is expected to be completed April 28 and will carry the same rights and status as Botala’s existing fully paid ordinary shares.

“In what is a very tough market it has been encouraging to see support for the Serowe coal-bed methane (CBM) project [in Botswana] based on an extremely successful March quarter as Botala transitions from exploration to production.

“Management continues to focus on the CBM pilot programme targeting commercial production of LNG, securing strategic development partners and additional offtake agreements. We are encouraged by our ongoing negotiations,” Botala CEO Kris Martinick said on April 22.