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- Australian clean energy company Pure Hydrogen Corporation (PH2) will become a substantial shareholder in Botala Energy, subject to Botala being admitted to the ASX
- The company will own 19.99 per cent of Botala as part of a sale and purchase agreement
- In exchange, Botala will receive an additional 21 per cent working interest in the Serowe CBM project to increase its aggregate interest to 70 per cent
- Pure Hydrogen will retain its working interest of 30 per cent in the Serowe CBM project, which will be free carried until Botala has spent $6.1 million on exploration and development
- Pure Hydrogen shares are down 1.35 per cent, trading at 36.5 cents as of 11:37 am AEST
Australian clean energy company Pure Hydrogen Corporation (PH2) will become a substantial shareholder in Botala Energy, subject to Botala being admitted to the ASX.
Botala had lodged its prospectus on May 16 as it moves to its initial public offering (IPO).
Pure Hydrogen will own 19.99 per cent of Botala as part of a sale and purchase agreement and, in exchange, Botala will receive an additional 21 per cent working interest in the Serowe CBM project to increase its aggregate stake to 70 per cent.
Pure Hydrogen will retain its working interest of 30 per cent in the project, which will continue to be free carried until Botala has spent a total of $6.1 million on exploration and development of the project by December 8, 2023.
Shareholders of Pure Hydrogen will have the opportunity to participate in the Botala IPO and will be offered priority access rights.
Under the priority offer, a total of up to 15 million shares has been set aside exclusively for Pure Hydrogen shareholders.
Each of the exclusive shares is priced at 20 cents, being up to an aggregate issue price of $3 million before costs.
Although not yet determined, the shares issued under the agreement are likely to be escrowed for two years.
Botala’s main undertaking is CBM exploration and development but the company is cognisant of the global transition to renewable energy and is actively undertaking early-stage research and development activities to assess the viability of developing renewable energy projects complementary to its main undertaking.
“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.”
The companies have signed a new extension until December 31 to the Serowe Hydrogen MOU already in place under which Pure Hydrogen and Botala are investigating the establishment of renewable energy businesses targeting power generation.
PH2 shares were down 1.35 per cent, trading at 36.5 cents as of 11:37 am AEST.
