Mount Burgess Mining (ASX:MTB) Reaches Memorandum of Understanding with Botala Energy – The Market Herald
- Mount Burgess Mining (MTB) has signed a memorandum of understanding with Australian energy company Botala Energy
- The MoU relates to Botala’s supply of a potentially LNG-backed hybrid power solution for Mount Burgess Mining’s polymetallic Kihabe-Nxuu project in Botswana.
- Both companies operate in Botswana, so they have entered into discussions to reach a mutually beneficial solution.
- Shares of the company were trading steadily at 0.7 cents at the end of the trading day
Mount Burgess Mining (MTB) has signed a Memorandum of Understanding (MoU) with Botala Energy.
Under the MoU, Botala Energy will potentially provide MTB with a hybrid solar/battery power solution, potentially backed by liquefied natural gas (LNG).
Mount Burgess will use the solution to power its polymetallic Kihabe-Nxuu project in Botswana and covers an area of 1000 square kilometres.
The Kihabe-Nxuu project is located within license PL43/2016 and is approximately 880 kilometers from the Serowe gas fields, where Botala Energy operates six exploration licenses.
The prospecting licenses are part of the Serowe project in which Botala holds a 49% stake under an affermage agreement with Pure Hydrogen (PH2) which holds the remaining 51%. Botala is entitled to earn up to 70% if or when he lists on the ASX.
As both companies operate in Botswana, where Botala Energy has the potential to supply power to MTB, discussions have begun to find a solution that benefits both parties.
Discussions are still in their early stages, so companies have yet to determine a timeline for the production or supply of LNG, the quantity required for the Kihabe-Nxuu project, or a price for the supply of LNG.
Shares of the company were trading steadily at 0.7 cents at the end of the trading day.