Friday, July 19, 2024

African Energy Resources makes BSE debut

Africa Energy Resources, the Australian quoted exploration outfit made its secondary listing on the Botswana Stock Exchange (BSE) on Monday in a move aimed at allowing local people to invest in natural resources.

The company, which has interests in the Sese area, made a debut listing with P2.45 per share, but there were no offers or trades on the stock.

African Energy Chairman, Blackie Marole, said the company is currently doing exploration work at its Botswana tenement and mining will follow later.

The company said the dual listing provides an opportunity for Botswana citizens to share in the future growth of the Sese Coal Project and provides African Energy with access to an additional shareholder base within Botswana that includes a number of significant institutional investors and pension funds.

“The purpose of listing is to afford Batswana to participate in investment in mining,” Marole added at the listing in Gaborone.

The company said on its website the BSE dual?listing is further evidence of its commitment to Botswana where it continues to make rapid progress towards developing the 2.7 billion tonne Sese Coal Project.

It joins other resources companies that include CIC Energy, Lucara Diamonds, Firestone Diamonds, Discovery Metals and A?Cap Resources.

The Sese coal project in eastern Botswana is wholly owned by African Energy Resources Ltd.

The project is 50km to the south of the mining hub of Francistown, and is immediately west of the existing rail, road and power corridor which runs the length of eastern Botswana, and which connects through into neighbouring Zimbabwe and South Africa and on into nearby Zambia and Mozambique.

David Scott, African Energy General Manager of Projects, explained initially they were exploring for uranium, but discovered coal.

Scott said already the company has spent P15 million in bulk sampling, but could not say how much the mine will cost.

The Sese project is situated┬áclose to the rail-line that┬á┬á links the┬ásouthern and northern parts of the┬ácountry in the eastern corridor ÔÇô that provides access to both┬áSouth African ports and the proposed Trans Kalahari rail┬áthat┬áwould link Botswana with Namibian ports.

The move by African Energy comes at a time when the world is predicted to see an acceleration of coal demand bolstered by the appetite from China, India and Japan.??This year alone, thermal coal is expected to outpace gas and demand by as much as 30 percent.

African Energy Resources becomes the fifth stock to list on the BSE this year.


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