Botala Energy Limited has secured firm commitments to raise A$1.35 million through a share placement to fund key development milestones at its Serowe coal bed methane (CBM) project in Botswana. This including, gas flow testing, maiden reserves certification and completion of a Phase 2 bankable feasibility study, the company has announced. The Australian Securities Exchange (ASX) and Botswana Stock Exchange (BSE)-listed company said the placement attracted support from new and existing sophisticated and professional investors. The funds will be raised through the issue of approximately 30 million new fully paid ordinary shares at A$0.045 per share, before costs. Botala said the proceeds would support continued flow testing of the Serowe-3.5B well at its Pitse Pilot, with the company targeting a commercial gas flow benchmark that could help reduce project risks and inform the assessment of its gas Reserves.
The funds will also be used to secure maiden Reserves certification through Sproule ERCE and finalise the Phase 2 development Bankable Feasibility Study (BFS), alongside working capital and offer-related expenses. Botala Energy Chief Executive Officer Kris Martinick said the capital raise would help advance the company’s gas development plans.
“The funds raised will be used to advance the Pitse Pilot at our Serowe coal bed methane (CBM) project in Botswana, including continued flow test of Serowe 3.5B,” Martinick said.
“Achieving our target commercial gas flow benchmark will further de-risk the project and directly support the Reserves classification assessment and completion of the Phase 2 BFS.”
In addition to the placement, Botala intends to undertake a share purchase plan (SPP), giving eligible shareholders an opportunity to acquire shares at the same price of A$0.045 per share.
The company is also working towards finalising a proposed investment of approximately A$3.6 million from the Minerals Development Company of Botswana (MDCB) into the Serowe CBM project. Martinick said discussions with MDCB had been progressing, although completion of the transaction remained subject to the conclusion of commercial agreements.
Under the placement, approximately 22.8 million new shares will be issued using Botala’s existing capacity under ASX Listing Rule 7.1. A further 7.2 million shares are proposed for directors participating in the placement, subject to shareholder approval at a general meeting.
The issue price of A$0.045 represents a discount of approximately 18 per cent to the company’s five-trading-day volume-weighted average share price of A$0.055. The new shares will rank equally with Botala’s existing shares.
The issue of shares under the placement, excluding those allocated to the Board, is expected to take place on or around 2 November 2026.
In addition to the placement, Botala intends to undertake a share purchase plan (SPP), giving eligible shareholders an opportunity to acquire shares at the same price of A$0.045 per share.
The capital raise is intended to support Botala’s next development milestones as it advances its Serowe CBM project, with gas flow testing, reserves certification and the phase 2 feasibility study among the key deliverables.
