LNG Limited raises AUD 38.6 million for Bear Head project
Liquefied Natural Gas Limited raised A$38.6 million (before costs) via a placement of 14,873,186 ordinary shares at A$2.60 to US and Australasian institutional investors. The placement will be made under the company’s placement capacity in accordance with ASX Listing Rules 7.1 and 7.1A.
The capital raising will be used to fund the acquisition of 100% of Bear Head LNG Corporation (BHLC) from a subsidiary of Anadarko Petroleum Corporation for US$11.0 million following the ASX announcement on Monday 18th July; and fund the development (including the FEED Study, permit and regulatory approvals and all Project Documentation) of the Bear Head LNG Export Project through to a possible Final Investment Decision in 2016.
The Bear Head LNG Project is located in Richmond County, Nova Scotia, Canada, and the key assets include:
- A 255-acre site comprising industrial-zoned land (180 acres) and deep-water acreage (75 acres) as well as foundations in place for two 180,000 cubic meter LNG tanks. The land has been cleared, a majority of site works completed and roads constructed;
- The Project Rights of the previously proposed LNG import terminal, including all assets, rights and obligations associated with the Bear Head project. LNGL plans to transform Bear Head into a 4 mtpa LNG export facility with potential for future expansion. This acquisition is subject to standard closing conditions and consents. The transaction close is expected on or before 31 August 2014.
Foster Stockbroking Pty Ltd acted as Sole Lead Manager of the Placement and was supported by the Company’s US advisor, New York-based EAS Advisors LLC, acting through Merriman Capital, Inc.
Press Release, July 30, 2014; Image: LNG Ltd