Pure Hydrogen Corporation will be a large shareholder in Botala Energy following the filing of Botala’s prospectus on 16 May 2022 and subject to Botala’s admission to the ASX.
Pure Hydrogen will own 19.99 percent of Botala upon Botala’s admittance, and in exchange, Botala will get an extra 21 percent working interest in the Serowe CBM Project, bringing its total stake in the project to 70 percent. Pure Hydrogen will retain its 30 percent working interest in the Serowe CBM Project, which will continue to be free carried until Botala has spent a total of $6.1 million (of which $3.8 million is currently outstanding) on exploration and development of the Serowe CBM Project by or before December 8, 2023.
The shareholders of Pure Hydrogen will have the opportunity to participate in the IPO and will be granted preferential access. Under the Priority Offer, up to 15,000,000 Shares priced at A$0.20 per share (representing up to a total issue price of $3,000,000 (before costs)) have been reserved for Pure Hydrogen stockholders only. The link to the prospectus is provided below.
This statement is accompanied by a letter outlining the terms and conditions of the offer, which has been signed by the chairman of Pure Hydrogen, Mr. Ron Prefontaine. The deal stipulates that the shares to be awarded to Pure Hydrogen would presumably be held in escrow for two years, but this has not yet been confirmed.
Botala’s primary activity is CBM exploration and development (specifically the Serowe CBM Project), but the company is cognizant of the global transition to renewable energy and is actively conducting early-stage research and development activities to assess the viability of developing complementary renewable energy projects. Consequently, the collaboration between Pure Hydrogen and Botala Energy will allow the two companies to advance their goal of producing reliable and dispatchable renewable energy in Southern Africa.
Pure and Botala have signed a new extension to the Serowe Hydrogen MOU until 31 December 2022. Under the terms of the agreement, Pure Hydrogen and Botala are studying the formation of renewable energy businesses focusing on power generation. Hydrogen and solar projects as well as other green energy projects are being evaluated by the JV, which will leverage Pure Hydrogen’s strong partnerships and activities in the Australian hydrogen sector. Pure Hydrogen will offer hydrogen assistance for the Project, which will be eligible for a number of in-country financing initiatives.
Managing Director of Pure Hydrogen Scott Brown said: “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. This provides many more options to advance the development of Serowe CBM Project and explore potential hydrogen projects in Botswana. This is also a great opportunity for Pure Hydrogen shareholders to access direct exposure to this project in Botswana.”
Kris Martinick CEO of Botala Energy “We are delighted to welcome existing PH2 shareholders to join Botala as we seek admission to the ASX while continuing to strengthen the working relationship between our two companies. This opportunity represents a great step forward in the development of the Serowe CBM Project with an exciting focus on further exploration and appraisal of the field providing growth potential for both companies.”