Pieridae Advances Shell Asset Deal
Canadian LNG developer Pieridae Energy said September 6 it has raised C$33.23mn (US$24.87mn) through the private placement of 38.64mn subscription receipts.
Pieridae said funds raised will be used to finance its previously-announced acquisition of Shell Canada’s natural gas assets in Alberta and for working capital purposes. The Shell asset acquisition, it said, is now expected to close by the end of September.
Upon closing of the acquisition, the subscription receipts will be automatically exchanged, on a one-for-one basis, for Pieridae common shares.
In addition to the private placement, Pieridae also said that Alberta Investment Management Corporation (AIMCo), on behalf of certain of its clients, has agreed to acquire Pieridae common shares sufficient to satisfy incurred interest and related fees of some C$4mn from its term loan and convertible debenture and to subscribe for additional common shares for gross proceeds of about C$820,000.
The agreement is subject to closing of the Shell Canada asset acquisition and the approval of the Toronto Stock Exchange.
“We are very pleased with the progress that is being made in raising the necessary capital to close the Shell asset acquisition in the coming weeks,” Pieridae CEO Alfred Sorensen said. “Adding these assets to our portfolio will create a solid, ongoing foundation for Pieridae as we continue to build toward becoming the first Canadian company to market LNG off the east coast to global consumers.”
Pieridae expects to take a final investment decision on its 10mn mt/yr Goldboro LNG project in Nova Scotia – the largest ever mega-project in the province – by the end of this year. Its development is expected to create thousands of drilling-related jobs in Alberta, as Pieridae develops the Shell assets, 3,500 construction jobs in Nova Scotia and 200 permanent jobs when the liquefaction and export terminal is operational. Some of the plant's projected output has already been pre-sold, with German utility Uniper agreeing to take all of train 1 and Swiss Axpo taking 1mn mt/yr of train 2.