13 March 2018
Atlantis Resources Limited (“Atlantis” or the “Company” or the “Group”)
Atlantis provides the following update on the transformational deal announced on 14 December 2017 whereby Atlantis will join forces with SIMEC Energy, a part of the GFG Alliance. The transaction is intended to create a listed platform which would own and operate a global portfolio of renewable generation assets.
The Company and its advisers have been making good progress on the acquisition of the Uskmouth power station in Wales, which is classed as a reverse takeover under the AIM Rules for Companies and Atlantis now expects to announce the finalised terms of the transaction and hold an Extraordinary General Meeting in Q2 2018 to allow shareholders to vote on the proposed transaction which, if approved, would see the Company recommence trading as SIMEC Atlantis Energy shortly thereafter.
Following completion of the front end engineering design (“FEED”) in H2 2018 and appropriate project based funding being secured, in relation to which discussions with project based debt and equity providers are on-going, the Uskmouth power station, which was previously coal-fired, will be converted to burn energy pellets, derived from non-recyclable waste products which would otherwise have been sent to landfill. The station will have an initial generation capacity of 220MW, with the option to convert a third unit in future, which would bring its capacity to 330MW.
As previously announced, the GFG Alliance will provide 20 year power purchase agreements and, along with its fuel supply partner, N+P Group, a 20 year fuel supply agreement which will allow this funding to be completed. As part of this transaction, Atlantis is also finalising a relationship agreement which will govern its interactions with the broader GFG Alliance and outline the Group’s first right of offer to acquire energy assets from across the SIMEC portfolio.
Tim Cornelius, CEO of Atlantis said:
“I am pleased with the excellent progress we are making on what is a complex transaction involving negotiating land and property agreements, grid access rights, power purchase agreements, a fuel supply agreement with multiple parties, technical support contracts and a relationship agreement that will govern how we might acquire further assets from within the SIMEC portfolio in due course. This is a truly transformational deal for Atlantis and the Directors believe that it will be the catalyst to drive rapid growth to quickly become a significant, diversified sustainable energy platform in Europe.
“The Uskmouth conversion will take up to one million tonnes of non-recyclable waste per year and will convert it into base load energy. Once completed, this will be the largest example of using these waste-derived energy pellets to convert a coal fired power station, and we believe will provide a template for how this can be replicated across other markets to provide sustainable generation and reduce landfill.
“This world leading project makes excellent use of the core skills and resources of the Atlantis team who designed, built and delivered the flagship MeyGen tidal energy project, which has continued to produce record generation results in 2018 and now has over 4,800 MWh of cumulative generation since late 2016. Our tidal division remains very active in developing tidal stream projects in Europe and South East Asia and also a tidal range project in England. Once we have completed this transaction, management is intent on growing SIMEC Atlantis Energy to provide attractive returns to our shareholders as a diversified renewable energy company with a balanced mix of mature operational assets as well as appropriate greenfield development projects.”
|via FTI Consulting
|Tim Cornelius, Chief Executive Officer
Andrew Dagley, Chief Financial Officer
|Cantor Fitzgerald Europe (Nominated Adviser and Joint Broker)
|+44 (0)20 7894 7000
|Macquarie Capital (Europe) Limited (Joint Broker)
|+44 (0)20 3037 2000
|+44 (0)20 3727 1000
Atlantis Resources Limited is a vertically integrated project developer and power generation equipment supplier in the marine power industry. The Atlantis group holds equity positions in a diverse portfolio of tidal stream development projects, which includes a stake of 77% in MeyGen Limited, the company developing the world’s largest tidal stream project in Scotland. In addition, Atlantis is pursuing a number of marine power project opportunities in France, South Korea and Indonesia to complement its UK pipeline.
Atlantis aims to generate revenue from a number of sources:
- Realising value from its equity ownership positions across a portfolio of projects;
- Providing origination and development, construction management and operations management services to marine renewable project owners and developers;
- Turbine manufacture, sales and servicing; and
- Licensing its technology to third party project owners and developers.
Alongside its project development interests, Atlantis owns a portfolio of patents and patent applications relating to tidal power generation, and has developed an extensive range of intellectual property and know-how in a growing global tidal industry that has the potential to achieve over 120,000MW of installed capacity.