Atlantis Resources Limited Proposed Acquisition of Tidal Projects (3402J)
December 17 2015 - 2:00AM
UK Regulatory
TIDMARL
RNS Number : 3402J
Atlantis Resources Limited
17 December 2015
17 December 2015
ATLANTIS RESOURCES LIMITED
("Atlantis" or the "Company")
ATLANTIS ANNOUNCES PROPOSED ACQUISITION OF TIDAL PROJECTS FROM
SCOTTISHPOWER RENEWABLES
ScottishPower Renewables is to join Atlantis as shareholder in
Tidal Power Scotland Limited
Project portfolio to be increased to over 500MW, including
flagship MeyGen project
Atlantis plans to add 130MW of further projects
Atlantis, a global leader in the tidal power sector, announces
that it has agreed to acquire two projects from ScottishPower
Renewables (UK) Limited ("SPR") for its Scottish tidal development
company, Tidal Power Scotland Limited ("TPSL"). The transaction is
subject to the satisfaction of certain conditions precedent which
are expected to be achieved in early 2016.
The consideration payable for the projects, which the Company
values at GBP6.6 million, is 3,859,703 shares in TPSL, which
equates to 6% of the issued share capital. Atlantis owns the
remaining 94% of TPSL.
As part of the transaction, TPSL will acquire SPR's entire tidal
power portfolio, comprising the 10MW Sound of Islay site in western
Scotland and the 100MW Ness of Duncansby site, immediately to the
east of Atlantis's flagship 398MW MeyGen project in north-eastern
Scotland. TPSL already owns 85% of the MeyGen project company, with
the remainder held by Scottish Enterprise.
The project assets include agreements for lease with The Crown
Estate for both sites, and the Sound of Islay site also has a grid
connection offer and construction consents from the Scottish
Ministers. The Sound of Islay project has been awarded EUR20.7
million of grant funding from the European Commission's NER300 fund
by way of capital and revenue support.
Following completion of the acquisition of Marine Current
Turbines Limited from Siemens AG in an all share deal earlier this
year, the Atlantis group has agreements for lease for two further
Scottish tidal sites, at the Mull of Galloway in south-west
Scotland and Brough Ness, to the north of the MeyGen and Ness of
Duncansby sites in the Pentland Firth. Atlantis is in the process
of adding these two projects, with a combined capacity of 130MW, to
the TPSL portfolio.
It is expected that construction will commence on the Sound of
Islay project in 2016, alongside the second phase of the MeyGen
project, which has also been awarded NER300 funding of EUR16.8
million. The first 6MW phase of the MeyGen project remains on
target to deliver power to the grid in 2016.
Tim Cornelius, CEO of Atlantis, commented:
"This is another step in consolidation of the tidal industry as
we pull together with SPR to create what is certainly the largest
portfolio of tidal power projects in the UK, if not the world.
"By 2022, we aim to have almost 650MW of installed tidal power
in Scotland alone, generating clean and predictable energy to meet
Scotland's green energy ambitions, and establishing a new export
industry for the future which builds on the existing supply chain
and expertise of decades of offshore experience."
For further information please contact:
Atlantis Resources Limited via FTI Consulting
Tim Cornelius, Chief Executive Officer
Peel Hunt LLP (Nominated Adviser and Broker) +44 (0) 20 7418 8900
Daniel Harris / Jock Maxwell MacDonald
FTI Consulting +44 (0) 20 3727 1898
Ben Brewerton / Alex Beagley / James Styles
This information is provided by RNS
The company news service from the London Stock Exchange
END
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