Tlou Cleared to Develop Botswana CBM
Australia and London ASX-listed coal bed methane (CBM) explorer Tlou Energy said August 31 it has been advised that a Mining Licence for its Lesedi CBM project has been granted by Botswana's Department of Mines in the Ministry of Mineral Resources, Green Technology and Energy Security.
The Mining Licence, among other things, grants the holder the right to produce CBM in the approved 900km2 licence area for a 25-year term starting on 21 August 2017 and ending on 20 August 2042. It was granted in full across the area applied for, previously known as Prospecting Licence PL002/2004.
Tlou adds that an annual licence fee is payable to the office of the Director of Mines of some $9,000, and that the government has decided not to exercise its option to take up a shareholding in the project; project development can commence at any time with no minimum spend stipulated;
Royalties are payable to the Government of Botswana currently at a rate of 3% of gross market value. Gross market value is defined as the sale value receivable at the mine gate in an arm's length transaction without discounts, commissions or deductions for the mineral or mineral product on disposal.
Mark Smedley