• Tlou has secured an additional A$3m loan from entities associated with Dr Ian Campbell
• Interest rate of 10% per annum
• The new loan is unsecured and is repayable on the earlier of 3 years or 60 days after generation of first electricity from the Company's Lesedi project in Botswana
• The existing loan is to be extended and have the same terms as the new loan
• Subject to shareholder approval, the loan (and existing loans) will be convertible into shares at 3.5 cents

Background

ILC Investments Pty Ltd ("ILC") has provided a A$2m loan to the Company (the "Existing Loan") as announced on 2 May 2023.  In that announcement, it was noted that the lender, ILC (Tlou's largest shareholder) was willing to continue providing funding support to assist the Company to reach its goal of connecting to the Botswana power grid and earning first revenue through the sale of electricity in Botswana.

Terms

An entity related to ILC, ILC BC Pty Ltd ACN 137 272 596 (ILCB), has entered into an unsecured loan agreement (the "New Loan") with Tlou for provision of a new A$1 million unsecured loan to the Company. Interest will be charged at 10% per annum and payable at the end of the term along with the principal, being the earlier of 3 years or 60 days after the date the Company first generates and supplies electricity into the grid from its Lesedi project in Botswana.

At any time during the term, subject to shareholder approval, the lender may elect to convert the whole or part of the New Loan into shares in the Company at A3.5 cents per share.

Extension to and conversion of existing loan

ILC has agreed to advance an additional A$2 million under the Existing Loan on the same terms as originally announced on 2 May 2023, provided that subject to shareholder approval, the balance of the extended Existing Loan may also be converted into shares on the same terms as the New Loan. The Existing Loan principal, and any interest due, will also be payable at the end of the term, being the earlier of 3 years or 60 days after the date the Company first generates and supplies electricity into the grid from its Lesedi project in Botswana.

Use of funds

Tlou anticipates to draw down the extension of the Existing Loan and the New Loan in full today. Funds are proposed to be used to further Tlou's operations in Botswana and provide additional working capital.  

Taking into account the full drawdowns, the outstanding balance of loans owing to ILC and ILCB is A$5 million plus interest.

KeyFacts Energy: Tlou Energy Botswana country profile