20th May 2015 08:28
LONDON (Alliance News) - Rame Energy PLC Wednesday said it has secured a binding arrangement for a USD4.7 million funding facility for the Cerro Coihue off-grid wind project in Chile.
The facility, which was originally announced in March, is to be supplied by Anden Re Capital SpA in exchange for a 75% equity interest in the project, with Rame to retain a 25% equity interest.
Under the terms of the deal, Anden also will lend Rame's subsidiary, Seawind Holdings SA, USD1.2 million to fund its 25% portion of the equity commitment for the project.
Rame also is talking to Anden about providing financing for the company's off-grid and smaller on-grid project portfolio, which on Wednesday it said was continuing.
Rame is acting as the engineering procurement and construction contractor on the project, which is to supply power to a producing mine owned by Australian-listed Mandalay Resources, and said construction has commenced for the mobilisation of civil works at site starting with the drilling of rock anchors for the foundations of the wind turbines.
Three Vestas V44 600 kilowatt wind turbines have been purchased for the project and will be fully refurbished and optimised for local conditions.
"I am delighted to have reached financial close on this agreement under which Rame retains a 25% equity interest in the project. There is a clear synergy between Rame and Anden Re, and our close partnership has enabled this project to proceed with robust economics," said Chief Executive Tim Adams.
Rame shares were up 8.5% to 8.95 pence per share on Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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