LONDON (Alliance News) - Infrastrata PLC shares rose Thursday as it said it has secured funding to start front-end engineering and design work on its Islandmagee gas storage project in Northern Ireland.
Shares were up 11% on Thursday at 0.27 pence each.
Further, the funding means the company has enough capital for the rest of 2018, once its fundraise announced earlier is completed.
Earlier in April, Infrastrata raised GBP925,000 in a share placing. Once this is completed, it will have matched the funds provided by a European Union Connecting Europe grant, enabling EUR4.0 million of funding to be received.
Of this, EUR1.6 million is now in escrow while the company releases front end engineering and design expenditure.
Infrastrata said it is looking at opportunities for more grant funding and believes it has a site which could have a 40 year operational life, double the life on which project economics have been assessed so far.
Regarding contractors for the work, contracts are nearly finalised formally.
Infrastrata commissioned a project concept evaluation study early last year, and it said interpretation shows there are advantages through project phasing, specifically in two "cavern increments" allowed revenue to be generated earlier.
The study also gives a "robust" internal rate of return of 12% with upside potential.
Lastly, Infrastrata is in discussions over securing more financing for Islandmagee, and it said "a number" of possible providers have expressed an interest in providing financing in return for a project level equity stake.