REG - Tlou Energy Ltd - A$2m Loan Agreement Signed

TLOU EnergyAnnouncement

02/05/2023 07:00

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RNS Number : 9909X  Tlou Energy Ltd  02 May 2023

 

 

 

2 May 2023

 

Tlou Energy Limited

("Tlou" or "the Company")

 

A$2m Loan Agreement Signed

 

 

Key points

 

Ø Tlou has received a A$2m loan from ILC Investments Pty Ltd

Ø Interest rate of 10% per annum

Ø The loan is unsecured and has a three-year term

 

Background

ILC Investments Pty Ltd ("ILC") has provided a A$2m loan to the Company (the
"Loan") as part of their continued support of Tlou's projects.  ILC is
already Tlou's largest shareholder having provided A$7.5m in capital via
previous share placements. ILC has also indicated it is willing to continue to
provide funding support to assist the Company to reach its goal of connecting
to the power grid and earning first revenue through the sale of electricity in
Botswana.

 

Terms

The Loan has a three-year term, commencing on 1 May 2023 and there are no
arrangement fees.  Interest will be charged at 10% per annum and payable each
quarter. The interest rate reflects the fact that the Loan is unsecured and is
only scheduled to be repaid at the end of the term (30 April 2026). However,
the Loan is proposed to cover short term requirements and can be repaid in
advance at any time without penalty should funds be available to do so.

 

Tlou will drawdown the Loan in full from the date of the agreement. Funds are
planned to be used to further Tlou's operations in Botswana and working
capital requirements. Tlou will also continue its efforts to source further
capital to advance its projects and will update the market in due course.

 

Related Party Transaction

By virtue of the direct shareholding held by ILC in the Company, the Loan
constitutes a related party transaction pursuant to Rule 13 of the AIM Rules
for Companies.  The directors of the Company, having consulted with the
Company's nominated adviser, Grant Thornton UK LLP, consider that the terms of
the Loan are fair and reasonable insofar as the Company's shareholders are
concerned.

 

The information contained within this announcement is deemed to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK
law by virtue of the European Union (withdrawal) Act 2018. The information is
disclosed in accordance with the Company's obligations under Article 17 of the
UK MAR. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.

 

By Authority of the Board of Directors

Mr. Anthony Gilby

Managing Director

 

****

 

For further information regarding this announcement please contact:

 Tlou Energy Limited                              +61 7 3040 9084
 Tony Gilby, Managing Director
 Solomon Rowland, General Manager

 Grant Thornton (Nominated Adviser)               +44 (0)20 7383 5100
 Harrison Clarke, Colin Aaronson, Ciara Donnelly

 Zeus Capital (UK Broker)                         +44 (0)20 3829 5000
 Simon Johnson

 Public Relations
 Ashley Seller                                    +61 418 556 875

 

About Tlou

Tlou is developing energy solutions in Sub-Saharan Africa through gas-fired
power and ancillary projects. The Company is listed on the ASX (Australia),
AIM (UK) and the BSE (Botswana). The Lesedi Gas-to-Power Project ("Lesedi") is
100% owned and is the Company's most advanced project.  Tlou's competitive
advantages include the ability to drill cost effectively for gas, operational
experience and Lesedi's strategic location in relation to energy customers.
All major government approvals have been achieved.

 

Forward-Looking Statements

This announcement may contain certain forward-looking statements.  Actual
results may differ materially from those projected or implied in any
forward-looking statements.  Such forward-looking information involves risks
and uncertainties that could significantly affect expected results.  No
representation is made that any of those statements or forecasts will come to
pass or that any forecast results will be achieved.  You are cautioned not to
place any reliance on such statements or forecasts.  Those forward-looking
and other statements speak only as at the date of this announcement. Save as
required by any applicable law or regulation, Tlou Energy Limited undertakes
no obligation to update any forward-looking statements.

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