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RE Royalties Announces Completion of CAD $4.0 Million Acquisition Loan and Royalty Agreement with Revolve Renewable Power
All amounts in Canadian dollars unless otherwise stated VANCOUVER, BC / ACCESSWIRE / February...
About this update from Re Royalties Ltd.
[{"type":"text","content":"RE Royalties Announces Completion of CAD $4.0 Million Acquisition Loan and Royalty Agreement with Revolve Renewable PowerAll amounts in Canadian dollars unless otherwise statedVANCOUVER, BC / ACCESSWIRE / February 14, 2024 / RE Royalties Ltd. (TSXV:RE)(OTCQX:RROYF) (\"RE Royalties\" or the \"Company\"), a global leader in renewable energy royalty financing, is pleased to announce that further to its news release dated October 4, 2023, Revolve Renewable Power Corp. (TSXV:REVV) (\"Revolve\"), has completed the acquisition (the \"Acquisition\") of WindRiver Power Corporation (\"WindRiver\"), a Canadian based owner, operator and developer of wind and hydro projects in the Provinces of British Columbia and Alberta.The Company provided a CAD $4.0 million secured loan (the \"Loan\") to support Revolve's acquisition of Windriver. The Loan has a term of 36 months and bears interest at the rate of 12% per annum, compounded monthly, and payable semi-annually. The Company also received a structuring fee of 1.0% on the Loan value at closing, and a gross revenue royalty of 0.5% on the acquired operating projects during the term of the Loan, growing to a gross revenue royalty of 1.0% upon repayment of the Loan for the remaining life of the power purchase agreements.The Acquisition includes a minority ownership (21%) in two operational run-of-river hydro projects in British Columbia, and a majority ownership (51%) in an operational wind project in Alberta with a combined gross capacity of 23 MW (the \"Operational Projects\"). It also includes a majority ownership (70 to 87.5%) in two development-stage hydro projects in British Columbia with a combined gross capacity of 90 MW.The Operational Projects receive revenue from Power Purchase Agreements with a prominent provincial utility and a municipal entity, for the hydro projects and the wind project, respectively. The Operational Projects have PPAs with remaining terms ranging from 32-35 years for the hydro projects and 11 years for the wind project.Bernard Tan, CEO of RE Royalties, stated: \"We're pleased to continue our partnership with Revolve and look forward to working with them on their growing portfolio of renewable energy projects. This investment presents an excellent opportunity for our investors and highlights the sustained demand for our innovative financing solutions.\"Steve Dalton, ...