24th Oct 2014 06:54
LONDON (Alliance News) - Atlantis Resources Ltd Friday said it raised GBP5.0 million in a discounted share placing, money it will use to fund its contribution to the MeyGen project, repay a GBP0.8 million loan, pay fees associated with the seabed lease at the Fundy Ocean Research Centre for Energy in Canada, and for working capital.
The company said it placed 12.5 million new shares at 40 pence each. Atlantis Resources shares closed down 3.3% at 46.44 pence on Thursday.
"We are delighted with the support of both new and existing investors for this placing. The funds will enable us to progress to the construction stage of Phase 1A of the MeyGen project," Chief Executive Tim Cornelius said in a statement.
MeyGen is expected to be the world's first commercial-scale multi-turbine tidal energy project. It is going to be built in the Pentland Firth in Scotland. When fully completed, the project will include 269 turbines submerged on the seabed, generating enough power for almost 200,000 homes in Scotland.
Last month, Atlantis Resources said it has reached financial close on phase 1A of the MeyGen tidal power project, with the funds to be released to suppliers and contractors to allow construction to start.
A total of GBP51.3 million in funding has been provided for the project, from the UK Department of Energy and Climate Change, Scottish Enterprise, Highlands and Islands Enterprise, the Crown Estate and Atlantis, according to the company.
The first stage of the project will comprise installing four 1.5 megawatt turbines offshore, along with the construction of onshore infrastructure to support the project. Three of the turbines are being provided by Andritz Hydro Hammerfest, a unit of Austrian industrial group Andritz AG, with one supplied by Atlantis and designed by Lockheed Martin.
Construction of the project, in Caithness in Scotland, is due to start in the fourth quarter of this year, with the first power to the grid and revenue due to start in the first half of 2016.
The company is using some of the funds it raised in the placing to repay a loan of approximately GBP0.8 million from EDB Investments Pte Ltd.
By Steve McGrath; [email protected]; @stevemcgrath1
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