PERTH (miningweekly.com) – Dual-listed Strata-X Energy has inked a non-disclosure agreement (NDA) with the Botswana Development Corporation (BDC) to develop a multi-staged $10-million financing strategy for the Serowe coal-bed methane project, in Botswana.
The NDA will allow the BDC to review the Serowe project and business models, and will have between 60 to 90 days to conduct due diligence on the project, with the aim of providing a multi-stage finance package to develop Serowe.
The proposed funding will incorporate both equity and debt funding of up to $10-million over the next three years.
“We are excited to be partnering with the BDC, the leading development fund in Botswana, as a potential significant cornerstone investor in our 100% owned Serowe coal bed methane project,” said Strata-X executive chairperson Ron Prefontaine.
The Serowe project has been estimated to contain up to six-trillion cubic feet of prospective resources, that extends over 1.1-million acres of the Botswana coal bed methane fairway. The natural gas from Serowe has the potential to change the makeup of the Botswana and Southern African region’s energy mix.
Strata-X is in the final stages of an environmental impact assessment, that will allow the company to drill an additional 75 wells above the 20 already approved over the internally-mapped high-grade area.