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RE Royalties Enters into a Letter of Intent to provide a Secured Loan to Revolve for US $8,000,000 to Finance Acquisition of a 9.6 MW Operating Wind Project in the United States
All amounts in Canadian dollars unless otherwise stated. VANCOUVER, BC / ACCESS Newswire /...
About this update from Re Royalties Ltd.
[{"type":"text","content":"RE Royalties Enters into a Letter of Intent to provide a Secured Loan to Revolve for US $8,000,000 to Finance Acquisition of a 9.6 MW Operating Wind Project in the United States All amounts in Canadian dollars unless otherwise stated. VANCOUVER, BC / ACCESS Newswire / April 1, 2025 / RE Royalties Ltd. (TSXV:RE)(OTCQX:RROYF) (\"RE Royalties\" or the \"Company\"), a global leader in renewable energy royalty-based financing, has entered into a letter of intent for a secured loan (the \"Loan\") with Revolve Renewable Power Corp. (TSXV:REVV) (\"Revolve\"), a North American owner, operator and developer of renewable energy projects, of up to US$8,000,000. The Loan will support Revolve's proposed acquisition (the \"Proposed Acquisition\") of a 95% interest in a 9.6 megawatt (\"MW\") operating wind energy project in the United States (the \"Project\").The Project consists of six 1.6 MW wind turbines generating revenue through a Power Purchase Agreement with a regional utility. Closing of the Loan is expected to occur in Q2 of this calendar year and is subject to several customary closing conditions including the completion of the Proposed Acquisition. The Loan will have a term of 24 months and bear interest at 12% on drawn funds, with interest payable on a quarterly basis during the term. The Company will also receive a royalty of 5% on gross revenues generated by the Project for its remaining life.The Project is Revolve's first acquisition of an operating renewable energy asset in the United States and builds on their current operating portfolio of 12.33 MW in Canada and Mexico.It includes a lease agreement for 127 acres of land with a project life until 2046. The Proposed Acquisition, once completed, will add 9.6 MW of net operational capacity to Revolve's portfolio, bringing the total under operation to 22 MW.Peter Leighton, COO of RE Royalties, stated: \"We are excited to be working with Revolve again as they continue to deliver on their growth strategy by adding more operating assets to their portfolio. This investment will be RE Royalties single biggest investment to date and will add significant accretive cash flow to our investment portfolio.\"\"This Proposed Acquisition is another significant milestone for Revolve as we continue to execute on our growth plan across North America,\" said CEO Myke Clark. \"Once completed, this ac...