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Sorry this is it in the proper format.MATERIAL ANNOUNCEMENT...

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    Sorry this is it in the proper format.

    MATERIAL ANNOUNCEMENT TODAY
    Leigh Creek Energy (ASX: LCK) has entered into a Trading Halt. The Company expects to resume on Thursday 1 July following a material announcement in relation to the agreement with DL E&C as announced to the market on 4 May 2021.

    WHAT THIS ANNOUNCEMENT IS EXPECTED TO BE ABOUT
    LCK is in final negotiations for the awarding of the contract to construct a multi-billion dollar fertiliser manufacturing plant and to also announce funding for this project.
    It is our belief the Company will announce that contracts have been signed and awarded and funding secured. If this is the case it has the potential to significantly re-rate the Company. Scroll down for the Top 10 reasons we like LCK. This multi-billion dollar construction project will also be of significance to South Australia and the Australian farming community.
    As close followers of LCK for many years we await with anticipation the ASX release on Thursday and following this receiving updated details regarding timelines for drilling, gas flow and plant construction as well as updated revenue projections.
    OFF TAKE AGREEMENTS CAN BE EXPECTED TO FOLLOW
    LCK have methodically lined up their ducks:
    1. Produced commercial qiantity and quality syngas and demonstrated no enviromental issues
    2. Received PPL - Petroleum Production License
    3. Tendered globally for Construction and Finance partners and then shortlisted with strong responses from several global players
    4. Awarded Exclusivity to DL Group enabing them to negotiate for both Construction and Funding contracts
    5. Raised capital sufficient to complete Stage 1- gas & electricity production
    We are now awaiting announcements of:
    • Construction Contract Awarded and Funding pathway, and following these
    • Off Take Agreements
    WE ARE AVAILABLE IF YOU HAVE ANY QUESTIONS
    The Company today responded to our queries by requesting we await the release of their Announcement to the market, expected on Thursday morning. As we all await this should you have any questions feel free to call me - I may even be able to draw your attention to information in the public realm you may not be aware of such as the recent video interview with LCK Head of Investor Relations Tony Lawry.
    Kind regards
    Sean Sandilands
    0412 166 471
    10 REASONS WE HAVE BEEN SO BULLISH ON LCK
    1. LCK has the largest uncontracted East Coast 2P gas reserve
    2. This chart below puts LCK on a page with some giant names
    3. That 1,153Pj is from just 1/3rd of the total resource LCK has at Leigh Creek
    4. LCK have proven they can produce commercial quantity and quality syngas with no environmental issues
    5. The SA Govt has issued LCK with a Petroleum Production License (PPL)
    6. The local market for Urea is huge: ~2 million tonnes p.a and 95% is imported!
    7. LCK have indicated they can produce and transport Urea for ~A$150 per tonne
    8. Initial annual urea plant capacity of 1 million tonnes p.a is planned
    9. The current retail price for Urea is ~A$700 per tonne
    10. LCK current market cap is just $117 million dollars

    COMPANY/ PROJECT SUMMARY
    • Leigh Creek Energy (ASX:LCK) is focussed on the construction of the Leigh Creek Urea Project (LCUP), its’ flagship project that develops low-cost nitrogen-based fertiliser for local and export agriculture markets.
    • Located in South Australia, 550km north of Adelaide, the LCEP will initially produce 1Mtpa of urea using its 1,153PJ 2P gas reserves, sufficient for 30+yrs of supply.
    Project Highlights:
    • The LCUP will be the only fully integrated urea production facility in Australia.
    • LCK entered a binding Heads of Agreement with leading South Korean engineering and construction company DL E&C Co., Ltd to exclusively negotiate terms for the Feasibility Study, FEED and EPCC at the LCEP.
    • The $2.6 billion infrastructure project possess a pre-tax leveraged Net Present Value (NPV) of A$3.4 billion, with an Internal Rate of Return (IRR) of 30%.
    • The average nominal operating costs will be within the lowest cost quartile of the global urea production cost curve, given the on-site production of syngas from its wholly owned resource.
    • Operations have been validated following the project’s pre-commercial demonstration phase where Syngas was successfully produced at LCUP
    • LCK has a comprehensive environment, social and governance strategy, with production methods approved by environmental regulation and to be carbon neutral by 2030. LCK is a signatory of the United Nations Global Compact, the world’s largest corporate sustainability initiative.
    • LCK has access to existing rail and road infrastructure, town servcies, commercial airport, etc, removing additional, burdensome CAPEX and ensures efficient distribution to established domestic and international markets.
    • LCK is not exposed to commodity and supply fluctuations related to gas and power given the vertically integrated operations whereby gas and electricity are produced on site.
    • There is global demand for Urea given its attractive growth given global population expansion and the need for improved agricultural efficiency.
    • Urea’s nitrogen base makes it easy to transport, easily absorbed in crops and has the potential to increase yields in crops by 50%.
 
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