- Mount Burgess Mining (MTB) has signed a memorandum of understanding (MoU) with Australian energy company Botala Energy
- The MoU is in relation to Botala supplying a hybrid energy solution potentially backed by LNG for Mount Burgess Mining’s Kihabe-Nxuu polymetallic project in Botswana
- Both companies operate within Botswana, so have commenced discussions to achieve a mutually beneficial solution
- Company shares were trading steady at 0.7 cents by 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 supply MTB with a solar/battery hybrid energy solution, potentially backed by liquified natural gas (LNG).
Mount Burgess will use the solution to power its Kihabe-Nxuu polymetallic project in Botswana and covers a 1000-square kilometre area.
The Kihabe-Nxuu project is located in the PL43/2016 licence and lies roughly 880 kilometres from the Serowe gas fields which is where Botala Energy operates six prospecting licences.
The prospecting licences are part of the Serowe project that Botala owns a 49 per cent interest in as part of a farm-in deal with Pure Hydrogen (PH2) who owns the remaining 51 per cent. Botala has the right to earn up to 70 per cent if or when it lists on the ASX.
As both companies operate in Botswana, where Botala Energy has the potential to provide a power supply to MTB, discussions have commenced to achieve a solution that benefits both parties.
The discussions are still in the early stages so the companies are yet to determine a time frame for the production or supply of LNG, the quantity required for the Kihabe-Nxuu project, or a price for the supply of LNG.
Company shares were trading steady at 0.7 cents by the end of the trading day.