LNG Ltd Raises Funds for Magnolia Project

LNG Ltd Raises Funds for Magnolia Project

LNG Limited of Australia said that it has raised A$49.5 million with a placement of 90 million ordinary shares at A$0.55 to US and Australian institutional investors.

The placement will be made in two tranches with 31,207,254 shares placed under the company’s placement capacity in accordance with ASX Listing Rules 7.1 and 7.1A, and the placement of 58,792,746 shares subject to shareholder approval.

The placement received very strong demand from existing Australian institutional shareholders and a group of US institutional investors, with the company welcoming Fairview Capital Asset Management, LLC as a new substantial shareholder and Claren Road Asset Management, LLC as a significant new shareholder.

Foster Stockbroking Pty Ltd acted as Sole Lead Manager and was supported by the company’s US advisor, New York based EAS Advisors LLC, acting through Merriman Capital, Inc.

The company’s Managing Director, Maurice Brand, said: “This is a significant milestone for the company and the strong demand for the placement is recognition of the outstanding progress that Magnolia LNG has achieved to date. In regard to the FERC application filed last week, the Magnolia LNG Project is placed among a small group of projects to have formally filed.”

“The company plans to use some US$30 million to fully fund Magnolia through to 30 June 2015 with the balance of funds to be used for LNGL working capital including the identification of other LNG opportunities.”

“To the end of April 2014, the Magnolia LNG Project has expensed a total of US$11 million, including the delivery of its filing application to FERC. While these costs are substantially lower than what has been reported by other US LNG developers, Magnolia LNG has had the benefit of a considerable amount of technical, engineering and development work that was associated with the company’s Fisherman’s Landing Gladstone LNG project in Australia.”

“With this funding in place the team is now fully focused on delivering the EPC contract and entering into binding liquefaction tolling agreements,” said Brand.

Press Release, May 05, 2014; Image: LNG Ltd.
Related news

List of related news articles