Tlou Energy Ltd A$2m Loan Agreement Signed (9909X)
May 02 2023 - 1:00AM
UK Regulatory
TIDMTLOU
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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END
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