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- Leigh Creek Energy (LCK) appoints PricewaterhouseCoopers as a strategic debt adviser, stepping closer to landing financing for the proposed development of its flagship Leigh Creek urea project in SA
- The company plans to complete an initial bankable feasibility study (BFS) for the project in the March 2022 quarter, with a final BFS to be completed before the end of 2022
- PwC will help the company through each of the stages of debt financing, from selecting an investment bank through to final settlement
- Leigh Creek says it expects its initial BFS to show a “sufficiently compelling case” for the project to enable banks to progress due diligence in expectation of the final BFS
- LCK shares down 6.67 per cent to 14 cents
Leigh Creek Energy (LCK) has appointed PricewaterhouseCoopers (PwC) as a strategic debt adviser, stepping closer to landing financing for the proposed development of its flagship Leigh Creek urea project (LCUP) in South Australia.
The fertiliser specialist said it was in the process of producing an initial bankable feasibility study (BFS) for a carbon-neutral urea manufacturing facility at Leigh Creek.
It planned to complete the initial BFS during the March 2022 quarter and a final BFS before the end of 2022.
Leigh Creek said the initial BFS would be used throughout the year to accelerate sourcing of
the required finance for the construction phase of the project, significantly reducing the time involved in securing full funding.
As a result, the company has taken its first steps towards securing debt funding for its namesake project through the appointment of PwC as senior adviser.
PwC will help Leigh Creek through each of the stages of debt financing, from selecting an investment bank to final settlement.
“Adding PwC to the world-class team of consultants and contractors working on LCUP is not only a reflection of the size and quality of the underlying project but provides further confidence to our investors and stakeholders that the project is moving rapidly towards construction,” LCK Managing Director Phil Staveley said.
Leigh Creek said it expected its initial BFS for the LCUP to “show a sufficiently compelling case” for the fertiliser facility to enable banks to progress due diligence in expectation of the final BFS.
LCK shares were down 6.67 per cent to 14 cents at 1:19 pm AEDT.
