West Perth-based Liquefied Natural Gas has raised more than $10 million which will be used in the ongoing development of its Fisherman's Landing gas project in Queensland.
West Perth-based Liquefied Natural Gas has raised more than $10 million which will be used in the ongoing development of its Fisherman's Landing gas project in Queensland.
The company said it has placed 17 million shares at a discounted 56 cents each to raise $9.52 million.
Shares in Liquefied Natural Gas were down 6.5 cents to 63.5 cents at 12:51 AEST.
A further $997,000 was raised from company directors exercising options.
The company is targeting first liquefied natural gas from Fisherman's Landing in 2012.
The announcement is below:
Funds to be used for Fisherman's Landing LNG Project development
Liquefied Natural Gas Limited (ASX Code: LNG) has completed a placement of 17 million new ordinary shares at $0.56 cents each to raise $9.520 million. The shares were placed at a discount to market.
In addition, the Company's Directors have exercised options that will provide a further $997,000 in available working capital.
The $10.5 million, raised from the placement and exercise of options, will primarily be used in the ongoing development of the Company's wholly owned Fisherman's Landing LNG Project, Gladstone Port.
The Company's Managing Director, Maurice Brand, said "the Directors were pleased with the growing awareness amongst investors of the project milestones achieved to date. Moreover, the key building blocks are now in place to allow for final investment decisions later this year and to realistically target first LNG from Gladstone in late 2012".
"We are appreciative of the ongoing support from all shareholders, including our two major corporate shareholders. While Golar LNG has elected not to participate in the placement of shares, they are continuing to provide tangible support to the project. Such support includes the secondment, at Golar's cost, of highly experienced technical, commercial and financial personnel and the direct participation in the progression of Port and LNG shipping related issues. Arrow Energy have subscribed for 2 million shares in the placement, subject to Shareholder approval, in order to maintain their current % shareholding in the Company. In addition, Arrow Energy continues to expend significant capital in developing their gas resources and pursuing relevant Government approvals, to allow for first gas supply to the Fisherman's Landing LNG project in 2012," added Mr Brand.
The placement was arranged by Paterson Securities Limited as Lead Manager and Bell Potter Securities Limited as Co Manager.
