Genex goes to the market to raise $90 million and complete Kidston financing

Genex will raise $90 million in a placement and rights issue to complete the financing of its $777 million Kidston pumped hydro project in north Queensland.


Mar 24, 2021, updated Mar 24, 2021
One of the disused mine pits to be used as part of the hydro scheme

One of the disused mine pits to be used as part of the hydro scheme

The company also announced it had received $47 million from the Australian Renewable Energy Agency as a grant to help fund the construction costs of the project. It adds to the $610 million loan from the Federal Government’s Northern Australia Infrastructure Facility and the $147 million paid to Powerlink by the State Government to fund the transmission costs.

J-Power has also agreed to take up $25 million in equity. At the completion of the equity raising, Genex will have $777 million in capital to deliver the pumped hydro scheme which is expected to take four years.

Genex had been looking for an equity partner to take a 50 per cent stake in the project which will be built on the disused Kidston gold mine pits. It had got as far as selecting a preferred partner but could not reach an agreement on terms and so opted for an equity raising and placement to finance the project.

The financing will include a placement to institutions of 170 million shares to raise $34 million and an 11-for-20 pro rata acelerated non-renounceable entitlement offer of 281 milllion shares to raise $56.3 million.

The new shares will be issued at 20 cents. It last traded at 28 cents.

Financial close on the project is expected mid-May, following an extraordinary general meeting to approve the J-Power equity.

Morgans and Canaccord Genuity were lead managers and underwriters on the deal.

The pumped hydro project will act like a battery. It will deliver electricity to the grid at peak times by transferring water from one pit to the other. Genex also operates a solar farm at the site and has plans for a wind farm.

Genex chief executive James Harding said the financing announced today was a major milestone for the project and the company.


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