Shumba Energy Ltd, the junior coal explorer and budding energy developer said it has raised additional funding through the exercise of warrants as the company looks to finance energy projects in Botswana.
The Botswana Stock Exchange (BSE) listed company said in a filing that following the exercise of 16,791,667 warrants (exercisable at BWP1.06 each) issued in August 2014, there will be an issuance of 16,791,667 Ordinary shares (“Shares”) and a cash injection of BWP17,799,167 (equivalent to USD1,536,028) into the company.
Shumba said the issued shares will be listed on the BSE and the Stock Exchange of Mauritius once all regulatory processes have been completed, following which the Company’s total number of Ordinary shares in issue will be 247,465,428.
“We are very pleased that even within the current depressed state of the mining and energy business and sector, that our investors see the value we continue to create and accordingly continue to support the company as we advance our energy projects in Botswana,” Shumba Energy Chairman, Alan M. Clegg said.
“The additional funding means that we are remain strongly positioned to deliver on our declared plans to bring to production our existing assets and also acquire to develop additional project opportunities as and when they may arise,” added Clegg.
Shumba is in the business of acquisition and development of highly prospective coal exploration licences in Botswana and it is in the process of becoming an energy developer.
The company’s flagship project, Sechaba Project, has approximately 1 billion tonnes of thermal coal and is next door to only operating coal mine in Botswana. Sechaba has multiple 300MW opportunities for domestic and export power and can also export large tonnages via existing rail, according to the company website.
The Sechaba project is located some 47 km north-north-west of the town of Palapye. The Palapye area is where there is major exploration by other companies and it is where Morupule Colliery, owned by Debswana is located.
It also has an agreement in place with Mulilo Renewable Project Developments (Pty) Ltd for the joint development of the Mabesekwa Export Independent Power Plant (MEIPP) at the Mabesekwa Coal Project. The project is aimed at taking part in the South African Coal Base Load IPP programme.
Mulilo is an Independent Power Producer (IPP) developer and investor which was originally formed in 2008 and works closely with project developers, technology providers, regulators and investors to source and develop premier energy projects.