REG - Infrastrata PLC - Islandmagee Project Update & 2019 Milestones

Harland & Wolff groupAnnouncement

23/12/2019 07:05

RNS Number : 7467X
Infrastrata PLC
23 December 2019
 


               
 
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.
 
 
23 December 2019
 
InfraStrata plc
("InfraStrata" or the "Company")
 
Islandmagee Gas Storage Project Update & 2019 Milestones
 
InfraStrata plc (AIM: INFA), the UK quoted company focused on strategic infrastructure projects and physical asset life-cycle management, is pleased to announce the completion of further milestones that were scheduled for 2019 at the Islandmagee Gas Storage Project ("Islandmagee Project" or "the Project") in Northern Ireland.  As announced on 20 December 2019, project funding has now been moved into 2020. The decision to take Final Investment Decision ("FID") in 2020 was a result of potential new funding opportunities available for the Project that could have significant long term upside gains for the Company, amongst which is the potential to retain a much larger project equity stake than originally envisaged.  
 




Description


Status




Environmental




Notification of public consultation dates


√ - Completed




All reports made available on the Islandmagee Energy Website


√ - Completed




Venues and dates of Islandmagee Energy public information sessions for public consultation made available on the website


√ - Completed




Commencement of enabling works prior to full scale construction


√ - Completed




 
Department of Agriculture, Environment and Rural Affairs (DAERA) have confirmed that the public consultation will run from the 20 December 2019 until the 07 February 2020, after which period DAERA will review any representations made in accordance with relevant legislation.
 
We are pleased to confirm that the Company will host the final public consultation events prior to the closure of the consultation period on the 07 February 2020 as follows:
 
Thursday 23rd January 2020          Gobbins Center                4-8pm
Friday 24th January 2020                Ballygally Castle Hotel    6-10am
Saturday 25th January 2020           Larne Townhall                 9-Noon
 
 
We have been in recent dialogue with the EU in relation to the outstanding EU grant reclaim of Euros 1.60 million. We have been reassured that the reclaim is well in progress and we will be in receipt of these funds in due course.  We have been further reassured all documentation is in good order and that these funds will flow through after following due process.
 
With the EU funds not being received before 31 December 2019, the Board has agreed with Costain Plc to extend the repayment date of the Costain Loan Facility ("Costain Loan"), originally announced on 04 November 2016 and due on 31 December 2019, with an accrued value of £810,669 as at 31 December 2019, to 31 December 2020 or on receipt of the EU grant reclaim, whichever is earlier.
 
Various enabling works have been ongoing at the Project site and will continue in the coming weeks as we prepare our sites for construction works to commence.  During the extended period that we have before we take FID, we will be in a position to determine what further enabling works we can undertake and complete in readiness for full construction. 
 
2019 Remaining Milestones - Revised Dates
 




Description


Completion target




Corporate




Appointment of Chairman


January 2020




Release of revised construction tender documents


Q1 2020




Final payment against EU Reclaim for completed FEED works


Q4'19/Q1 2020




Heads of Terms agreed for project equity funding (or alternative funding)


H1 2020




Equity funding agreement executed (or alternative funding)


H1 2020




Final Investment Decision (FID)


H1 2020




 
In relation to Harland & Wolff (Belfast) Limited the business has now received various term sheets for an initial debt facility of £2m. We will, in the coming weeks, evaluate these offers with the aim of having this debt facility put in place in January 2020.
 
John Wood, Interim Chairman and CEO of InfraStrata, said: 
 
"I am satisfied with the progress that has been made this year on our Islandmagee Gas Storage Project. It is equally my aspiration to commence Project construction as soon as possible, but the team have stepped up and undertaken many additional tasks and work streams that were not envisaged at the start of 2019. Now that these have been successfully completed, we are in a much better position as we move into 2020.  Whilst we are all disappointed about not reaching FID this year, the Board unanimously feels it is in the best long-term interests of the shareholders to re-evaluate the position that we are in with new funding options becoming available.  With  the UK's departure from the EU now imminent, our gas storage project will become a critical piece of infrastructure that will provide security of supply for the island of Ireland and the wider UK.
 
"As we move into 2020 our AGM is planned for late January 2020 which I will chair as interim Chairman. I am keen that this will be my last duty as interim Chairman. We have made good progress in identifying suitable candidates and subject to successful due diligence and acceptance, we look forward to welcoming our new Chairman into the Company immediately after the AGM.  We also expect to make another Non-Executive Director appointment in the early part of 2020 which will further strengthen our board to comprise of two Executive Directors and three Non-Executive Directors."
 
**ENDS**
 
For further information, please visit www.infrastrataplc.com or contact:
 




InfraStrata plc
John Wood, Chief Executive & Interim Chairman
 


c/o Newgate Communications
+44 (0)20 3735 8825
 




Allenby Capital Limited (AIM Nominated Adviser & Broker)
Jeremy Porter / Liz Kirchner
 


+44 (0)20 3328 5656




Arden Partners plc (Joint Broker)
 
Paul Shackleton / Dan Gee-Summons (Corporate Finance) Simon Johnson (Corporate Broking)
 


+44 (0)20 7614 5900




Newgate Communications (PR)
Elisabeth Cowell/ Ian Silvera/Jamie Williams
 


+44 (0)20 3757 6880




 
 
Notes to editors:
 
InfraStrata is a London Stock Exchange-listed group focused on strategic infrastructure projects.
 
The rapid development of the 100% owned Islandmagee Gas Storage Project is a core workstream for InfraStrata. It is expected to provide 25% of the UK's natural gas storage capacity and to benefit the Northern Ireland economy as a whole when complete. Given that the Committee on Climate Change has advised that the UK will still need a significant quantity of natural gas by 2050 - about 70% of today's consumption - the market opportunity for this project is compelling.  It is the only gas storage project in North West Europe to be awarded 'Project of Common Interest' status by the European Union, confirming its strategic importance to the entire continent.
 
Mindful of the fact that safe, secure and flexible sources of energy are needed for a sustainable future, InfraStrata is focused on providing investors with exposure to a growing portfolio of UK, European and international energy infrastructure projects. With this in mind, the Company's highly experienced team is focused on acquiring, developing 1and commercialising innovative infrastructure projects around the world. 
 
 




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