Liquefied Natural Gas Limited executed a Share Sale Agreement (the Agreement) with a third-party (the Buyer) for the acquisition of all the shares of LNGL’s wholly-owned subsidiary, Gladstone LNG Pty Ltd (Gladstone LNG). In return, LNGL received US$800,000, previously held in a trust account under a previously disclosed Licence Transfer Agreement, and a reimbursement for security deposits posted by Gladstone LNG related to the Fisherman’s Landing project licences.
Pursuant to the terms of the Agreement, the Buyer secured ownership of the proposed Fisherman’s Landing LNG project, including the licences and the opportunity to utilize LNGL’s OSMR® technology on a future LNG project at the Fisherman’s Landing Gladstone site. The Buyer shall pay LNGL an additional US$4 million if financial close is achieved for an LNG project at the site.
“This agreement completes LNG Limited’s exit from the Fisherman’s Landing project,” said Greg Vesey, Managing Director and CEO of LNGL. “Our teams remain completely focused on our activities for both Magnolia LNG and Bear Head LNG.”