LNG closes $49.5M in placement for Magnolia facility
Liquefied Natural Gas (LNG) Ltd has closed $49.5 million in the placement of its shares to its present Australian and new American institutional investors. The company will use the proceeds as funding for its 8mtpa Magnolia LNG plant in Louisiana, according to The West Australian.
The price of the 90 million new shares was pegged at $0.55 apiece. There will be two tranches for this placement, with the second one still subject to approval by the shareholders, the report detailed.
LNG managing director Maurice Brand said: "With this funding in place the team is now fully focused on delivering the EPC contract and entering into binding Liquefaction Tolling Agreements."
Brand said $30 million from the proceeds would be used to sustain the Magnolia facility until June 30, 2015. The rest of the fund will be used as working capital and to search for new opportunities for the company, the report explained.
Last week, LNG submitted a formal application for the said project to the US Federal Energy Regulatory Commission. Another LNG production facility is already in the works in Gladstone, Queensland, The West Australian reported.