Atlantis Resources Limited Transaction Update
13 March 2018 - 6:02PM
RNS Non-Regulatory
TIDMARL
Atlantis Resources Limited
13 March 2018
13 March 2018
Atlantis Resources Limited
("Atlantis" or the "Company" or the "Group")
Transaction Update
Atlantis provides the following update on the transformational
deal announced on 14 December 2017 whereby Atlantis will join
forces with SIMEC Energy, a part of the GFG Alliance. The
transaction is intended to create a listed platform which would own
and operate a global portfolio of renewable generation assets.
The Company and its advisers have been making good progress on
the acquisition of the Uskmouth power station in Wales, which is
classed as a reverse takeover under the AIM Rules for Companies and
Atlantis now expects to announce the finalised terms of the
transaction and hold an Extraordinary General Meeting in Q2 2018 to
allow shareholders to vote on the proposed transaction which, if
approved, would see the Company recommence trading as SIMEC
Atlantis Energy shortly thereafter.
Following completion of the front end engineering design
("FEED") in H2 2018 and appropriate project based funding being
secured, in relation to which discussions with project based debt
and equity providers are on-going, the Uskmouth power station,
which was previously coal-fired, will be converted to burn energy
pellets, derived from non-recyclable waste products which would
otherwise have been sent to landfill. The station will have an
initial generation capacity of 220MW, with the option to convert a
third unit in future, which would bring its capacity to 330MW.
As previously announced, the GFG Alliance will provide 20 year
power purchase agreements and, along with its fuel supply partner,
N+P Group, a 20 year fuel supply agreement which will allow this
funding to be completed. As part of this transaction, Atlantis is
also finalising a relationship agreement which will govern its
interactions with the broader GFG Alliance and outline the Group's
first right of offer to acquire energy assets from across the SIMEC
portfolio.
Tim Cornelius, CEO of Atlantis said:
"I am pleased with the excellent progress we are making on what
is a complex transaction involving negotiating land and property
agreements, grid access rights, power purchase agreements, a fuel
supply agreement with multiple parties, technical support contracts
and a relationship agreement that will govern how we might acquire
further assets from within the SIMEC portfolio in due course. This
is a truly transformational deal for Atlantis and the Directors
believe that it will be the catalyst to drive rapid growth to
quickly become a significant, diversified sustainable energy
platform in Europe.
"The Uskmouth conversion will take up to one million tonnes of
non-recyclable waste per year and will convert it into base load
energy. Once completed, this will be the largest example of using
these waste-derived energy pellets to convert a coal fired power
station, and we believe will provide a template for how this can be
replicated across other markets to provide sustainable generation
and reduce landfill.
"This world leading project makes excellent use of the core
skills and resources of the Atlantis team who designed, built and
delivered the flagship MeyGen tidal energy project, which has
continued to produce record generation results in 2018 and now has
over 4,800 MWh of cumulative generation since late 2016. Our tidal
division remains very active in developing tidal stream projects in
Europe and South East Asia and also a tidal range project in
England. Once we have completed this transaction, management is
intent on growing SIMEC Atlantis Energy to provide attractive
returns to our shareholders as a diversified renewable energy
company with a balanced mix of mature operational assets as well as
appropriate greenfield development projects."
Enquiries:
Atlantis Resources via FTI Consulting
Tim Cornelius, Chief Executive Officer
Andrew Dagley, Chief Financial Officer
Cantor Fitzgerald Europe (Nominated
Adviser and Joint Broker) +44 (0)20 7894 7000
Andrew Craig
Rick Thompson
Richard Salmond
Macquarie Capital (Europe) Limited
(Joint Broker)
Nick Stamp +44 (0)20 3037 2000
FTI Consulting +44 (0)20 3727 1000
Ben Brewerton
Alex Beagley
James Styles
About Atlantis
Atlantis Resources Limited is a vertically integrated project
developer and power generation equipment supplier in the marine
power industry. The Atlantis group holds equity positions in a
diverse portfolio of tidal stream development projects, which
includes a stake of 77% in MeyGen Limited, the company developing
the world's largest tidal stream project in Scotland. In addition,
Atlantis is pursuing a number of marine power project opportunities
in France, South Korea and Indonesia to complement its UK
pipeline.
Atlantis aims to generate revenue from a number of sources:
-- Realising value from its equity ownership positions across a portfolio of projects;
-- Providing origination and development, construction
management and operations management services to marine renewable
project owners and developers;
-- Turbine manufacture, sales and servicing; and
-- Licensing its technology to third party project owners and developers.
Alongside its project development interests, Atlantis owns a
portfolio of patents and patent applications relating to tidal
power generation, and has developed an extensive range of
intellectual property and know-how in a growing global tidal
industry that has the potential to achieve over 120,000MW of
installed capacity.
This information is provided by RNS
The company news service from the London Stock Exchange
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