4 Jan 2017 07:00
Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR).
4 January 2017
InfraStrata plc
("InfraStrata" or the "Company")
Funding Update
The Board of InfraStrata plc (AIM: INFA), the independent gas storage company, announces an update in respect of the Company's working capital position and its fundraising activities following its announcement on 4 November 2016 (the "Announcement").
The Company is continuing to examine its options with its advisers for securing the necessary funding to enable work to commence on the Front-End Engineering Design ("FEED") for the Islandmagee gas storage project, as well as to provide additional working capital for the Company.
The Board has recently engaged with potential investors with a view to securing the funding for the FEED and corporate overheads as set out in the Announcement, and this process is ongoing. In the meantime, the Company is in advanced stages of negotiations for potential debt funding to be provided in the short term. The Board currently believes this proposed debt funding will be sufficient, with existing funds, to meet InfraStrata's minimum levels of corporate costs to the end of 2017, but the progression of the FEED will require the securing of additional funding. It is emphasised that there can be no certainty regarding the timing of the conclusion of any of the Company's current fundraising negotiations, the terms of such funding and/or whether any new funding will ultimately be secured. Should short-term funding not be forthcoming during January, then the Board will need to consider whether the Company can continue as a going concern.
Further announcements will be made in due course as appropriate.
The Front End Engineering & Design (FEED) and Insitu Downhole Testing programme for the Islandmagee gas storage project is co-financed by the European Union's Connecting Europe Facility.
Disclaimer releasing the European Union from any liability in terms of the content of the dissemination materials:"The sole responsibility of this publication lies with the author. The European Union is not responsible for any use that may be made of the information contained therein."
For further information please contact:
InfraStrata plc
Stewart McGarrity, Joint Managing Director 020 8332 1200
Anita Gardiner, Joint Managing Director
Nominated Adviser and Broker - Allenby Capital Limited
Jeremy Porter / Alex Brearley / Liz Kirchner 020 3328 5656
Financial PR - Camarco
Billy Clegg / Gordon Poole 020 3757 4980
Notes:
Background on InfraStrata plc
InfraStrata is an independent gas storage company focused on the UK and Ireland.
Further information is available on the Company's website www.infrastrata.co.uk.
Background on the Islandmagee Storage Project
The Islandmagee gas storage project company, Islandmagee Storage Limited ("IMSL"), is owned 90% by a wholly owned subsidiary of InfraStrata plc and 10% by a wholly owned subsidiary of Mutual Energy Limited. The project is a proposed salt cavern gas storage facility located on Islandmagee in County Antrim, Northern Ireland. Work commenced in 2007 with the acquisition of 3D seismic data to image the Permian salt in the Larne Lough area. During 2012, planning permission was granted for the project and a gas storage licence was issued by the Utility Regulator. In October 2013, the gas storage project was granted a 'Project of Common Interest' ("PCI") status by the European Commission. In 2015 a well was drilled to core the salt and confirm the technical feasibility of the project, supported in part by the Commission. The final stage before a Final Investment Decision will be the Front-End Engineering Design and Commercialisation of the project. To date approximately £11m has been invested in the project.