Pure Hydrogen grabs a hefty slice of ASX hopeful Botala Energy
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Pure Hydrogen is poised to become a major shareholder of Botala Energy, which lodged its IPO prospectus on the ASX last week.
Under the agreement dating back to July last year, the company will own 19.99% of Botala together with options upon the latter’s admission into the ASX in exchange for an additional 21% working interest in Serowe.
Pure Hydrogen (ASX:PH2) will continue to own 30% of the underlying Project which will remain free caried, until Botala has spent a total of $6.1m, of which $3.8m is still outstanding, on exploration and development.
Botala’s stake in the Botswanna gas project is up to 70%.
Pure Hydrogen shareholders will also be given an exclusive priority offer to participate in Botala’s IPO as part of the deal, with 15 million shares priced at 20c each on offer.
Additionally, the two companies have a non-binding memorandum of understanding to negotiate a hydrogen and renewables project in Botswana.
This is in line with Botswana developing a renewable energy strategy alongside the World Bank, that will allow it to become energy independent from neighbouring South Africa.
“We are excited about the collaboration between Pure Hydrogen and Botala Energy and look forward to Botala being admitted to ASX and continuing to grow the Serowe CBM Project,” Pure Hydrogen managing director Scott Brown said.
“This provides many more options to advance the development of Serowe CBM Project and explore potential hydrogen projects in Botswana.”
Botala chief executive officer Kris Martinick added that the opportunity represented a great step forward in the development of the Serowe CBM Project with a focus on further exploration and appraisal.
The partners recently upgraded third-party certified resources at Serowe by 96% to 315.7 billion cubic feet of gas following successful drilling of the Serowe-4 and Serowe-5 wells.
Botala intends to carry out a pilot program to demonstrate commercial gas flow at the project, to be followed by an appraisal program to convert gas resources into reserves, which is the amount of gas that can be produced economically.
This article was developed in collaboration with Pure Hydrogen, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.