The directors of African Energy say the company’s application for water rights for the Sese Coal & Power Project in Botswana have been recommended for approval by the board of the Water Utilities Corporation (WUC).

Their recommendation has been passed on to the Minister for Minerals, Energy and Water Resources for final approval. African Energy applied for water rights from Shashe Dam, seeking an allocation of up to 2.8 Gl/annum.

This is sufficient to provide all water necessary for the Sese Integrated Power Project (300MW power station and 1.5 Mtpa coal mine) with the balance of the water rights being available for expansions of the power project, and/or an initial export project comprising mining and coal handling and processing facilities.

Shase Dam is approximately 30km north of the Sese coal deposit, and water will be taken to the project by pipeline. The award of water rights for the 2.5 billion tonne Sese Coal & Power Project will represent a significant milestone for the Company. A further announcement will be made once final approval has been received.

Equally the company has received commitments to raise A$3.0 million before Costs through the issue of 21.43 million new ordinary shares at an issue price of A$0.14 per share (“Placement”).

The new shares will be placed with institutional and sophisticated investors from Asia and Australia. Shareholder approval is not required for the Placement. As part of the Placement $0.5 million has been committed by Directors of African Energy, which is subject to shareholder approval via a General Meeting of Shareholders to be announced shortly.

Blackswan Equities acted as the lead manager for the Placement. It is intended that the funds raised will allow the Company to continue to advance the Sese Coal & Power Project in Botswana.