LIQUIFIED Natural Gas Limited (LNGL) has raised A$38.6 million in an oversubscribed placement, with the funds to be injected into advancing the Bear Head LNG export project in Canada.
The company completed a placement of 14.87 million shares at A$2.60 a share to US and Australasian institutional investors which was significantly oversubscribed.
Foster Stockbroking acted as Sole Lead Manager of the Placement.
Funds from the raising will be used to fund the acquisition of Bear Head LNG Corporation (BHLC) from a subsidiary of Anadarko Petroleum Corporation for US$11.0 million and will also be put towards the development of the Bear Head project through to a possible final investment decision in 2016.
Specifically, for front end engineering design study, permit and regulatory approvals as well as all project documentation.
This acquisition, which is subject to standard closing conditions and consents, is expected to be wrapped before the end of August.
The Bear Head LNG project is located in Richmond County, Nova Scotia and comprises a 255‐acre site comprising industrial‐zoned land and deep‐water acreage as well as foundations in place for two 180,000 cubic meter LNG tanks.
LNGL’s vision is to transform Bear Head into a four million tonne per annum LNG export facility with potential for future expansion.
LNGL managing director Maurice Brand thanked the participants in the placement for their continuing support of the company’s strategy.
“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,” he said.
“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.”
Up to 700 construction jobs are expected to be created from the project.