Highlights

  • Up to 7,222,222 new shares proposed to be issued to Board members.
  • Issue price of A$0.045 per share, on the same terms as the placement.
  • Issue is subject to shareholder approval at a General Meeting.
  • Funds to support commercial gas flow work at Pitse and the Phase 2 Bankable Feasibility Study.

Botala Energy Ltd (ASX:BTE) has lodged an Appendix 3B notifying the ASX of a proposed issue of up to 7,222,222 fully paid ordinary shares. The shares are to be issued to members of the company’s Board, who are participating as investors in the company’s placement on the same terms as other placement participants. The issue price is A$0.045 per share, and the proposed issue date is 14 December 2026.

Board Participation Subject to Shareholder Approval

Because the shares are to be issued to directors, the issue requires approval from shareholders, which will be sought at a General Meeting. The Appendix 3B confirms that a party referred to in ASX Listing Rule 10.11, which covers related parties such as directors, is participating in the proposed issue. The estimated date for determining whether the approval condition has been met is 11 December 2026.

Once issued, the new shares will rank equally in all respects with the company’s existing ordinary shares. The form indicates the shares will not be restricted securities and will not be subject to voluntary escrow.

Use of Funds

Botala said the funds raised will be applied towards demonstrating commercial gas flows at its Pitse project, Reserves certification, and finalisation of the Phase 2 Bankable Feasibility Study. These activities are aimed at advancing the project towards a clearer commercial picture.

The company has not indicated any change to its dividend or distribution policy as a result of the proposed issue.

Placement Fees and Structure

Botala is acting as lead manager for the placement, supported by various brokers. Those brokers will receive a fee of 6% on funds raised by them. The placement is not underwritten, and the company has not reported any other material fees or costs associated with the proposed issue.

The issue is being made for cash consideration in Australian dollars. Based on the maximum number of shares and the issue price, the Board’s participation would represent about A$325,000 before costs.

Key Takeaways

The Appendix 3B shows Botala’s directors intend to invest alongside other placement participants on identical terms, subject to shareholder approval. Funds are directed at key project milestones at Pitse, including gas flow demonstration, Reserves certification and the Phase 2 Bankable Feasibility Study. The outcome of the General Meeting vote is the next step for this portion of the placement.