Argonaut has assisted Sino Gas & Energy Holdings Limited (ASX: SEH) (“Sino Gas”) to secure a US$50 million debt facility with Macquarie Bank Limited (“Macquarie”) which was publicly announced to the market on 25 June 2014. Macquarie’s involvement is a major endorsement of Sino Gas’ Chinese projects and this is an important step in the transformation of Sino Gas to being a meaningful production company. It is also a really good example of Argonaut’s capability and well done to the Argonaut Team who worked on this transaction.
Commenting on the agreement Gavin Harper, Chairman of Sino Gas, said “With US$57 million in cash as at the end of the March quarter and the Facility of up to US$50 million, Sino Gas is strongly positioned to fund its development share of the PSCs towards early production and Overall Development Plan submissions and start the transition to becoming a significant gas producer”.
“Sino Gas has undertaken a strongly contested and rigorous tender process for the Facility and has negotiated very competitive terms with a reasonable headline interest rate and most importantly limited dilution to our shareholders with a modest number of options issued at a significant premium to our current share price”.
Additional information regarding the Company and the Debt Facility can be found on the company’s website at www.sinogasenergy.com.