Serowe CBM Project
Serowe is near one of Africa’s heaviest haulage trucking routes, with access to the Copperbelt of Zambia, the Democratic Republic of Congo to its north, the ports of South Africa to the south and east via the greater-Johannesburg region, (the industrial heartland of South Africa, ~550km) with its vast mining and mineral processing industry and has highway access to the west coast port of Walvis Bay in Namibia.
On ASX Admission, Botala will hold a 70% legal interest in the Serowe CBM Project, comprising:
- a non-revocable 21% legal and beneficial interest in the issued capital of Sharpay, which Botala will acquire from PH2 simultaneous with Botala’s Admission, pursuant to a joint venture interest sale agreement with PH2 dated 5 July 2021 (PH2 Sale Agreement), a summary of which is set out in in the prospectus; and
- a 49% interest in the issued capital of Sharpay, which Botala previously acquired from PH2 pursuant to an earn-in under the Serowe JOA and which comprises:
- ownership of a non-revocable 18% of the issued capital of Sharpay (Non-Revocable Interest).
- ownership of a revocable 31% of the issued capital of Sharpay (Revocable Interest), which may be revoked by PH2 if Botala does not spend a total of $6.1 million (Minimum Commitment) (of which approximately $3.85 million is currently outstanding (Outstanding Amount)) on exploration and development on the Serowe CBM Project on or before 8 December 2023 (Minimum Commitment Deadline).
To December 2021, Botala has spent approximately $2.3 million on exploration and development of the Serowe CBM Project. Following ASX Admission, Botala’s immediate focus will be to develop the CBM potential of the Serowe CBM Project. Botala intends to use funds raised from the General Offer to satisfy the Outstanding Amount.