Costs for Gigante Salmon’s new facility have risen by more than $18 million in recent months.
Norwegian land-based farmer Gigante Salmon has secured half of the required additional funds for its farm in Rodoy through a long-term lease arrangement with SpareBank 1 Finans Nord-Norge, the company announced on Wednesday.
The facility’s construction costs have surged by NOK 200 million ($18 million) in recent months due to general price hikes and modifications for fish welfare, bringing the total cost to NOK 645 million ($59 million), the company announced in September.
To finance the remaining extra costs, Gigante plans a private placement of new shares, with main shareholder Gigante Havbruk expected to subscribe for up to NOK 100 million ($9 million).
Despite a delayed smolt release, the company expects its first harvest by end-2024.
The land-based producer anticipates a production of 3,000 metric tons of salmon initially, aiming for 20,000 metric tons by 2027. Besides its Rodoy facility, Gigante owns a site at Feoya Island in Gildeskal, Norway.