Shumba Coal Limited says it has raised funds to finance energy developments in Botswana following a private placement. The move comes on the back of waiver of pre- emptive rights passed by the majority of shareholders at the last Annual Meeting.
According to the coal explorer, the waiver was valid until 31 December 2015 and under which authority the ‘company has proceeded with this Private Placement, the receipt of subscriptions from Botswana institutions, in a non-brokered private placement financing for aggregate gross proceeds of BWP 27.5 million.’
The Private Placement consisted of 19,695,856 Shares of the Company (“Share”) at a price of BWP 1.40 per Share.
According to the company, ‘these new Shares will be admitted for listing by the Botswana Stock Exchange (“BSE”) and the Stock Exchange of Mauritius Limited (“SEM”) following completion of regulatory approval processes.’
“The funding shall be used to accelerate the development of the Company’s energy projects in Botswana.”
Shumba Coal is a Botswana focused local Coal Mining and Energy Development Company listed on the Botswana Stock Exchange and the Stock Exchange of Mauritius Ltd and has over 260 shareholders. Shumba Coal intends to develop one or more 300MW or larger power stations in addition to producing coal for domestic and regional consumption.