Leigh Creek Energy (LCK) has raised $18 million to progress stage one of its flagship project in South Australia.
The funds raised will be used to advance stage one of the Leigh Creek Energy project (LCEP) towards production of commercial syngas and power generation.
The company advised that the funds will be allocated as follows: $1 million for the acquisition of 3D seismic; $6.5 million for drilling and construction of gasifier chambers; $6 million for the acquisition of power generation infrastructure; and $4.5 million for general working capital.
Managing director Phil Staveley said the $18 million capital injection will enable LCK to continue to move forward with stage one of the project.
“This puts us one step closer to our goal of building a plant at Leigh Creek which can deliver into the Australian and overseas markets,” he said.
“The opportunity presented by this capital raise means we can immediately focus all our resources and attention on driving forward the commercial stages of the project.”
LCK has advised it expects to execute the final agreement for engineering, procurement, construction and completion of the urea plants with DL E&C.
Last month the company signed an agreement with South Korean engineering and construction company DL E&C for a large scope of work for LCEP.
The binding heads of agreement (HoA) is to negotiate with DL E&C for the feasibility study, front-end engineering and design (FEED) and engineering, procurement, construction and commissioning (EPCC) for the project.
LCK has advised that the primary agreed principals for the agreement include: DL E&C managing the LCEP feasibility study and FEED for final investment decision (FID).
Once FID is made, DL E&C will lead engineering and construction of the ammonia and urea production infrastructure.