Australian aquaculture firm Seafarms Group (SFG) has acquired the assets of “Project Sea Dragon” and said it plans to begin the process of permitting and staging development of a new shrimp farm.
Seafarms Group said that the liquidators of Project Sea Dragon and Seafarms Group subsidiary Sea Dragon Shrimp signed an asset sale agreement, under which Sea Dragon Shrimp will acquire all assets and undertakings of Project Sea Dragon. According to a release posted to the Australian Stock Exchange, the assets will be purchased for AUD 750,000 (USD 489,000, EUR 423,000), including a deposit of AUD 33,000 (USD 21,500, EUR 18,600).
“This acquisition will provide SFG the opportunity to continue to develop these assets and expand its existing prawn-farming operations into the Northern Territory and Western Australia,” Seafarms Group CEO Peter Fraser said in a release.
Seafarms Group originally envisioned Project Sea Dragon to be a massive land-based prawn aquaculture project in Australia, with an investment cost of AUD 1.45 billion (USD 945 million, EUR 818 million) for the development of up to 10,000 hectares of ponds for black tiger prawn production. The project ran into multiple snags soon after its inception, including a former CEO claiming the project could not proceed in its current form, having the trading of its securities suspended when Seafarms Group Limited withdrew funding, a court ordering the project’s liquidation and a later appeal of that order being denied, and the company completing sales and leasebacks of its farms.
Most recently, Seafarms Group increased its revolving credit facility as it worked to reacquire assets related to Project Sea Dragon and overcome the challenges and court cases to restart the project.
Seafarms Group acknowledged that the last 24 months for the company have involved multiple challenges related to Project Sea Dragon, including “legal, financial, and structural complexity,” which have resulted in significant costs and risks for the company. Fraser said the new purchase will help Seafarms Group move forward and will allow the company to develop prawn-farming ponds on Legune Station on the border of the Northern Territory and Western Australia, establish a processing facility in Kununurra, and expand its breeding facilities in Exmouth.
“Unencumbered by the legacy issues of Project Sea Dragon, we will re-engage with potential investors to fund the development of these expanded operations in the NT and WA,” Fraser said. “The past 24 months have been particularly challenging for the entire SFG team – from the board members to our loyal and hardworking employees. Despite the challenges, the board, executives, and employees have remained focused and committed to our goal of developing a unique and globally significant seafood industry project.”
Looking forward, Fraser said once Seafarms Group completes the purchase of Project Sea Dragon and secures both the licenses and farming infrastructure of the project, the company will begin a detailed planning, permitting, and staged development process for the new farms.
“The company will provide further updates to the market as we progress development, permitting, and investment,” Fraser said.
