Strike secures an additional A$20m for Perth Basin
PERTH (miningweekly.com) – ASX-listed Strike Energy has secured up to A$20-million in additional funding through a secured debt facility with Macquarie Bank to fund pre-development and development costs for its Perth Basin gas projects.
The facility is structured in two tranches, with the first tranche of A$10-million committed with similar conditions to the existing drawn debt, while the second tranche of A$10-million is uncommitted and subject to Macquarie’s approval.
The first tranche funding would cover current operational activities, while the second tranche is intended to progress the development of the Perth Basin assets, subject to Macquarie approval.
As part of the establishment cost of this new facility, Strike will issue Macquarie with 20.7-million options to subscribe for Strike ordinary shares at an exercise price of 34c. The options will be issued at the financial close of the initial tranche, will not be subject to shareholder approval, and will expire in December 2024.
Strike’s Project Haber has been corporately structured so as to quarantine the fertiliser plant, the South Erregulla gas fields, sequestration reservoir and the recently acquired land that forms the Mid West Low Carbon Manufacturing Precinct.
Strike and its advisers are investigating potential options for pre-final investment decision (pre-FID) capital expenditure to be funded from within this structure which may include possible non-parent recourse pre-development facilities or a potential initial sell-down of a minority interest at the project level. In the medium term, a further project equity sell-down prior to FID is the primary mechanism that Strike intends to use to fund its equity contribution to construction.
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