28th Aug 2014 10:06
LONDON (Alliance News) - Rame Energy PLC Thursday said it has raised GBP750,000 before expenses by placing 4.8 million new shares with new and existing investors at 15.5 pence each, money it will use to speed the development of 118 megawatts of wind power projects in Chile and potentially improve the economics of the projects.
"In addition, proceeds of the placing will be used for taking wind measurements at 100 metres above ground level at the four projects. The data gathered will be used to calibrate the extensive existing wind measurements taken by Rame at the project sites," the energy consultant and power generator said in a statement.
"This new data will enable the company to accurately analyse the enhanced energy outputs achievable using the latest generation of large high efficiency wind turbines now becoming available in the market. This has the potential to improve the already robust economics of these projects," it added.
The company in June signed a deal with a Chilean unit of Spanish bank Santander for up to USD69 million of equity financing for Rame's next four wind projects in Chile, totalling 118 megawatts. The placing funds will allow it to speed the due diligence required by Santander under the agreement.
Rame Energy shares were down 13.7% at 16.5 pence Thursday morning, one of the biggest declines on the London market.
By Steve McGrath; [email protected]; @SteveMcGrath1
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