Botala Energy has extended the Botswana Government’s 90-day option to acquire equity in its Serowe coal bed methane (CBM) Project, in accordance with the terms of the project’s granted Mining Licence.
The extension, which runs from 16 May 2025 to 31 July 2025, is intended to allow the Government, through the Mineral Development Company of Botswana (MDCB), sufficient time to complete due diligence. The option would enable the State to acquire a 15 percent equity stake in the Serowe CBM Gas Project under Section 40 of the Mines and Minerals Act.
The extension, according to Botala, was requested by the MDCB.
MDCB is a minerals and mining investment holding company owned by the Government of Botswana.
Its charter is to manage and develop mining interests and optimise returns while ensuring socially and environmentally responsible management.
MDCB’s vision is to become a globally competitive investment company, contributing to Botswana’s financial security through its mining and mineral investment portfolio.
Kris Martinick, Chief Executive Officer, said Botalawelcomes the interest of the Botswana Government in the Serowe CBM Gas Project and has provided this extension of the option period to allow the Botswana Government to engage a consultant to complete the due diligence process.
“This process reflects the strategic importance of the project to Botswana’s energy security,” Martinick said.
“We look forward to continuing our collaboration with MDCB and the Government of Botswana as we advance the development of the Serowe CBM Project.”
Botala was granted a mining licence early this year, which provides it with the security of tenure required to produce CBM natural gas within the approved licence area for 10 years with the option to renew for a further 25 years.
With the regulatory framework now in place, Botalasaid it is accelerating development activities, including the drilling of additional wells, infrastructure upgrades, and completion of its Bankable Feasibility Study (BFS).
The company said these efforts are designed to position the Serowe CBM project for first revenue generation, aligning with the increasing demand for natural gas in Botswana and the broader Southern African market.
