Liquefied Natural Gas Ltd (LNG Ltd) has raised AU$ 38.6 million (before costs) via a placement of 14 873 186 ordinary shares at AU$ 2.60 to US and Australasian institutional investors. The placement will be made under LNG Ltd’s placement capacity in accordance with ASX Listing Rules 7.1 and 7.1A.
LNG Ltd confirmed that the capital raising will be used to fund the acquisition of 100% of Bear Head LNG Corp. from a subsidiary of Anadarko Petroleum Corp. (Anadarko) for US$ 11.0 million, which was announced recently. The funds will also be used for the development of the Bear Head LNG export project (including the FEED study, permit and regulatory approvals and all project documentation) through to a possible Final Investment Decision in 2016.
Foster Stockbroking Pty Ltd acted as the Sole lead Manager of the placement and was supported by the company’s US advisor, EAS Advisors (acting through Merriman Capital Inc.).
LNG Ltd’s Managing Director, Maurice Brand, said, "We thank the participants in the placement for their continuing support of the company's strategy of developing a pipeline of opportunities by selectively securing sites that meet our criteria and growing the company's strong presence in North America
"We are particularly keen to secure opportunities where we can either replicate Magnolia LNG or substantially use all the company's technical, engineering, technology and development expertise. Bear Head fits those criteria with the development plan based on the use of the company's OSMR® LNG Process Technology which will deliver lower capital costs, improved energy efficiency and a shorter development and construction schedule".
"Bear Head has considerable unlocked value and sunk costs that can readily be transformed into an LNG export facility. We are looking forward to working with local governments in developing this project that will have significant local economic benefits. We are anticipating the creation of 45 to 70 permanent direct jobs and 600 to 700 construction jobs".
Support for LNG Ltd
In a statement released on its website, LNG Ltd also drew attention to a media released from 28 July 2014, in which the Government of Nova Scotia stated that the "Government is congratulating Liquefied Natural Gas Ltd on its proposal to develop a liquefied natural gas export facility at Bear Head near Port Hawkesbury.”
Energy Minister, Andrew Younger, said: "This is a great step toward making Nova Scotia an LNG export destination and represents a tremendous opportunity for rural economic development.”
Adapted from press release by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/liquefaction/30072014/lng-ltd-raises-capital-for-bear-head-lng-1103/