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RE Royalties Acquires Royalties on 11 Projects in Ontario And Appoints Investor Relations Firm Renmark Financial
VANCOUVER, BC / ACCESSWIRE / June 18, 2020 / RE Royalties Ltd . (TSXV:RE) ("RE Royalties" o...
About this update from Re Royalties Ltd.
[{"type":"text","content":"RE Royalties Acquires Royalties on 11 Projects in Ontario And Appoints Investor Relations Firm Renmark FinancialVANCOUVER, BC / ACCESSWIRE / June 18, 2020 / RE Royalties Ltd. (TSXV:RE) (\"RE Royalties\" or the \"Company\") is pleased to announce that it has acquired royalties on 11 additional projects (the \"Second Portfolio\") from an existing client and privately-held company in Ontario (the \"OntarioCo\").The Company has refinanced the existing OntarioCo loan and the new loan is a $5 Million loan for a term of one year at an interest rate of 10 percent. As part of the transaction the Company acquired gross revenue royalties (2%) on the Second Portfolio for approximately 20 years. In addition, the royalty rate on its original portfolio of 49 projects has also been increase to 2%. In both cases the 2% royalty rate is subject to a graduated reduction to a minimum of 1.25% if all or part of the loan is repaid prior to maturity.OntarioCo owns and operates 57 (with an additional 3 in construction) roof-top and ground-mount solar projects in Ontario with a generation capacity of 22 MW DC. All the projects have 20-year Feed-In Tariff (\"FIT\") contracts with the Independent Electricity System Operator (\"IESO\"), a crown corporation owned by the government of Ontario. All operational projects with existing FIT contracts and projects that have reached notice to proceed by the Ontario government will continue until the end of the FIT contract life.Peter Leighton, COO of the Company, commented, \"We are pleased to work with our client again on the completion of their new projects, that benefit both the environment, and our shareholders. This transaction showcases the value of the long-term relationships RE Royalties has with its existing clients.\"The acquisition of the Second Portfolio in Ontario increased RE Royalties portfolio from 75 royalties to 86 royalties on solar, wind and hydro projects in Canada, the United States and Europe.RE Royalties has also retained the services of Renmark Financial Communications Inc. to assist with its investor relations activities. In consideration of the services to be provided, the monthly fees incurred by RE Royalties Ltd. will be a cash consideration of $8,000 CAD, starting June 1st, 2020 for a period of six months and monthly thereafter. Renmark Financial Communications does not have any interes...