Photo by: Bloomberg
PERTH (miningweekly.com) – ASX-listed Liquefied Natural Gas on Wednesday announced that it would raise A$38.6-million to fund the acquisition and development of the Bear Head liquefied natural gas (LNG) project, in Canada.
Earlier this week, Liquefied Natural announced that it would spend $11-million to acquire Bear Head from a subsidiary of Anadarko Petroleum Corporation. The project includes 225 acres comprising industrial-zoned land and deep-water acreage, as well as foundations for two 180 000 m3 LNG tanks for a proposed 11.3-million-tonne-a-year LNG import terminal.
Liquefied Natural on Wednesday said that the company had placed more than 14.8-million shares, at A$2.60 each, to raise the capital, which would not only be used to fund the acquisition of Bear Head, but also to fund project development, including permit and regulatory approvals and all project documentation.
A final investment decision on Bear Head was expected in 2016.
Liquefied Natural MD and CEO Maurice Brand told shareholders that the company was keen to secure opportunities where it can either replicate its US-based Magnolia LNG project, or use its technical, engineering, technology and development expertise.
“Bear Head fits those criteria with the development plan based on the use of the company’s LNG process technology, which will deliver lower capital costs, improved energy efficiency and a shorter development and construction schedule.”
The share placement was made under the company’s existing capacity, and as such did not require shareholder approval.