05/05/2014 - 11:23

LNG raises $49m for Magnolia

05/05/2014 - 11:23

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Perth-based Liquefied Natural Gas says its Magnolia LNG project is fully funded with the completion of a $49.5 million capital raising.

LNG raises $49m for Magnolia

Perth-based Liquefied Natural Gas says its Magnolia LNG project is fully funded with the completion of a $49.5 million capital raising.

LNG placed 90 million ordinary shares at 55 cents each over two tranches, with 80 per cent of the placement taken by institutional investors in the US.

Foster Stockbroking acted as lead manager to the placement.

Placement of the second tranche of shares is subject to shareholder approval at an extraordinary general meeting to be held next month.

LNG said $30 million of the funds raised would take the Magnolia project in the American state of Louisiana to financial completion, with the balance to be used for working capital and the identification of other opportunities.

"This is a significant milestone for the company and the strong demand for the placement is recognition of the outstanding process that Magnolia LNG has achieved to date," LNG managing director Maurice Brand said.

LNG last month formally filed an approval application for the Magnolia project with the US Federal Energy Regulatory Commission, which reviews proposals to build LNG terminals.

The Magnolia project comprises an 8 million tonnes per year LNG export terminal, with the first stage encompassing two LNG trains, two storage tanks, a jetty and a shiploading facility.

LNG shares were trading 2 cents lower at 63.5 cents at 11:17am WST.

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