TIDMCRCL
RNS Number : 0035Y
Corcel PLC
10 May 2021
Corcel PLC
("Corcel" or the "Company")
Acquisition of 50MW Flexible Energy Project
10 May 2021
Corcel Plc, ("Corcel" or "the Company"), the natural resource
exploration and development company with interests in battery
metals and flexible grid solutions, announces the acquisition of a
40% interest in the "shovel ready" Tring Road 50MW gas peaking
project outside of Aylesbury from Arlington Energy Limited
("Arlington Energy" or "AE"). The Company further announces its
intention to explore and discuss with AE the potential, subject to
agreement on terms, to co-develop and fund additional flexible
energy assets in the United Kingdom.
Highlights:
o CRCL acquires a 40% interest in the shovel ready 50MW Tring
Road gas peaking Project from AE providing material additional
exposure to the Company's existing UK flexible energy storage and
production portfolio
o Purchase consideration is GBP400k satisfied by GBP150k cash
and 12,026,168 new ordinary shares of GBP0.0001 each ("Ordinary
Shares") in Corcel, locked in for six months, with AE becoming a
second cornerstone investor in the Company, alongside the Chinese
owned Sinom Group
o Corcel and Arlington Energy agree to take the Tring Road
project through to financial close later in 2021
Chief Executive Officer, Scott Kaintz commented: "This is a
highly significant milestone for Corcel. The addition of the
"shovel ready" Tring Road project to our existing Burwell project
dramatically bolsters our position in the increasingly competitive
flexible energy space here in the UK. We believe that gas peaking
assets of this nature are essential to assist the transition to
renewables and will provide significant trading margins given the
variability of renewable energy production and the inherent
volatility of UK energy demands.
I am also excited by the opportunity of exploring a broader
strategic partnership with Arlington Energy, which, if agreed,
would provide Corcel with additional AE flexible energy investment
opportunities."
Transaction Details
Corcel has acquired a 40% interest in the Tring Road energy
project from Arlington Energy, located outside of the town of
Aylesbury, England. Consideration for the acquisition is GBP400,000
satisfied by GBP150,000 cash and 12,026,168 new Ordinary Shares
("Shares"). The Shares will be locked up for a period of six months
following admission.
Corcel and AE have formed an industry standard joint venture to
operate the project and will look to jointly arrange funding for
the project over the coming months, targeting financial close later
in 2021. It is anticipated that AE will continue to lead
construction and the operation of the project. The joint venture
partners intend to procure a development fee at financial close as
well as an equity carry as part of ultimate arrangements
negotiated. In addition, Corcel is expected to receive a 3% fee
covering all equity funding arranged.
Corcel has also agreed to AE having standard industry drag along
rights from end September 2021, in the event that the parties have
not arranged funding for the project by that stage.
Tring Road Project
The Tring Road project is a 50MW gas peaking project located
approximately 40 miles northwest of London. The project is "shovel
ready", with a 50MW grid connection already secured allowing
primarily export of electricity and a binding option to lease
signed with the landowner and planning permission also secured.
The Company, following comprehensive due diligence on the
project, has received third party estimates of annual gross margins
of between GBP103-147k per MW/per annum once the project is
operational.
Strategic Partnership
Although formal terms have yet to be finalized, Corcel and AE
will explore and discuss the potential to develop additional energy
storage, gas peaking and solar assets in the United Kingdom with a
view to Corcel participating in future AE projects in the UK
flexible energy sector.
Admission to trading on AIM
Application is being made to AIM of London Stock Exchange for
12,026,168 new Ordinary Shares to be admitted to trading on AIM,
which will rank pari passu with the Company's existing issued
ordinary shares. Dealings are expected to commence on or around 14
May 2021.
Total Voting Rights
Following the issue of the 12,026,168 new Ordinary Shares, the
issued share capital of the Company consists of 357,547,532
ordinary shares of GBP0.0001 each with voting rights. No ordinary
shares are held in Treasury.
The above figure of 357,547,532 may then be used by shareholders
as the denominator for the calculations by which they will
determine if they are required to notify their interest in, or a
change to their interest in the Company under the Disclosure and
Transparency Rules.
For further information, please contact:
Scott Kaintz 020 7747 9960 CEO Corcel Plc
Roland Cornish/ Rosalind Hill Abrahams 020 7628 3396 NOMAD
Beaumont Cornish Limited
Thomas Smith 020 7392 1432 Broker Monecor (London) Ltd (ETX
Capital)
Simon Woods 0207 3900 230 IR Vigo Communications
This announcement contains inside information under Article 7 of
Regulation (EU) 596/2014 as it forms part of UK domestic law by
virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under
Article 17 of MAR.
.
About Arlington Energy Limited
Arlington Energy is a private energy company focused on
delivering flexible energy assets, designed and built to perform in
the UK merchant energy markets. Bringing new and innovative funding
sources and structures into the distributed energy market,
Arlington is seeking to become a leading player in the flexible
generation sector. More information on AE which is registered in
England and Wales under number 11867454 can be found on their
website at www.arlingtonenergy.co.uk .
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END
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