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RE Royalties Announces $1.86 Million Loan to Revolve Renewable Power and Royalty on Energy Storage Projects in Mexico
All amounts in Canadian dollars unless otherwise stated VANCOUVER, BC / ACCESSWIRE / Sep...
About this update from Re Royalties Ltd.
[{"type":"text","content":"RE Royalties Announces $1.86 Million Loan to Revolve Renewable Power and Royalty on Energy Storage Projects in MexicoAll amounts in Canadian dollars unless otherwise statedVANCOUVER, BC / ACCESSWIRE / September 15, 2022 / RE Royalties Ltd. (TSXV:RE)(OTCQX:RROYF) (\"RE Royalties\" or the \"Company\"), a global leader in renewable energy royalty-based financing, announces that it will provide Revolve Renewable Power Corp. (\"Revolve\"), a developer of renewable energy projects in North America, a $1.86 Million loan (the \"Loan\") and royalty facility to support the purchase of battery and inverter equipment for three energy storage projects, totalling 3.2 MWh of capacity, currently under development in Punta Cancun, Mexico (the \"Projects\").The Projects are located at the site of a major hotel chain in Cancun, Mexico. The hotels have entered into Energy Services Agreements (\"ESAs\") with Revolve whereby Revolve will receive an annual fixed payment in addition to sharing the energy savings delivered by the Project over a 10-year term. Revolve has also entered into an agreement with Quartux Mexico S.A. de C.V. (or \"Quartux\"), a highly experienced installer and operator of battery storage systems in Mexico, to deliver a turnkey solution for the installation and commissioning of the Projects.The Loan will have a term of two years and will be secured against the assets of the Projects, bear interest at 12% per annum, payable quarterly, and Revolve will pay a 2% structuring fee on the total Loan value. The fee will be capitalized and added to the overall Loan amount at financial close, which is expected to be completed in the next few weeks. A gross revenue royalty of 5% (the \"Royalty\") will apply to all revenues received by Revolve from the Projects for the duration of the ESAs.This Loan represents the Company's second transaction with Revolve, with the Company previously providing Revolve with a $1.6 Million loan to support its acquisition of an operational rooftop solar portfolio in Mexico.Bernard Tan, CEO of the Company stated \"This is an attractive opportunity for our investors and allows us to work with the Revolve team in growing both our portfolios in Mexico. The investment will help build energy resiliency and support further growth in the deployment of renewables in North America.\"Steve Dalton, CEO of Revolve, commente...