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RE Royalties Enters into CAD $4.0 Million Loan and Royalty Agreement with Revolve Renewable Power
All amounts in Canadian dollars unless otherwise stated VANCOUVER, BC / ACCESSWIRE / October ...
About this update from Re Royalties Ltd.
[{"type":"text","content":"RE Royalties Enters into CAD $4.0 Million Loan and Royalty Agreement with Revolve Renewable PowerAll amounts in Canadian dollars unless otherwise statedVANCOUVER, BC / ACCESSWIRE / October 4, 2023 / RE Royalties Ltd. (TSXV:RE)(OTCQX:RROYF) (\"RE Royalties\" or the \"Company\"), a global leader in renewable energy royalty financing, has entered into an agreement with Revolve Acquisition Corp. (the \"AcquisitionCo\"), a wholly owned subsidiary of Revolve Renewable Power Corp. (TSXV:REVV) (\"Revolve\"), to provide a CAD $4.0 million secured loan (the \"Loan\"). Revolve is a North American renewable energy developer with 2.8 GW of wind, solar, and battery projects under development in the USA and Mexico.The Loan will support AcquisitionCo's proposed acquisition of WindRiver Power Corporation (\"WindRiver\") a Canadian based owner, operator and developer of wind and hydro projects (the \"Proposed Acquisition\"). WindRiver has 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\"). WindRiver also has majority ownerships (70 to 87.5%) in two development-stage hydro projects in British Columbia with a combined gross capacity of 90 MW.Completion of the Proposed Acquisition is subject to certain conditions, including the final acceptance by the TSX Venture Exchange (the \"TSXV\"), receipt of WindRiver shareholder approval, receipt of a final order approving the Arrangement from the Court of King's Bench of Alberta, Judicial Centre of Calgary (the \"Final Order\") and other customary closing conditions.The Operational Projects receive revenue from Power Purchase Agreements (\"PPAs\") with BC Hydro and the City of Medicine Hat, 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.The Loan will have a term of 36 months and bear interest at the rate of 12% per annum, compounded monthly, and payable semi-annually. The Company will receive a structuring fee of 1.0% on the Loan value at closing, and a gross revenue royalty of 0.5% on the Operating Projects during the term of the Loan, growing to a gross revenue royalty of 1...