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Cerro Coihue* Financing Update
Rame, the independent power producer, has announcde that it has executed binding terms with Anden Re. Capital SpA regarding the US$4.7 million funding facility, as announced on 13 March 2015, for the Cerro Coihue off-grid wind project in Chile, which is to supply power to a producing mine owned by TSX Listed Mandalay Resources. All conditions have been satisfied including final agreement and execution of the engineering procurement and construction contract and the signing of a revised power purchase agreement to reflect the amended project timescales. As previously announced, completion is anticipated in Q4 2015.
Cerro Coihue is the project previously described as ‘Cerro Bayo’.
Anden Re, an investment group, has invested US$3.5 million of equity into the Project in exchange for 75% of the equity. In addition it has provided Rame’s Chilean subsidiary, Seawind Holdings SA, with a US$1.2 million debt facility to fund the Company’s equity contribution. The parties have further agreed to move towards terms to govern a broader relationship whereby they may collaborate on the financing of Rame’s extensive off-grid and smaller on-grid project portfolio.
As previously announced on 13 March 2015, Rame is acting as EPC contractor on the Project and construction has commenced for the mobilisation of civil works at site starting with the drilling of rock anchors for the foundations of the wind turbines.
Three Vestas V44 600kW wind turbines have been purchased for the Project and will be fully refurbished and optimised for local conditions. The nacelles have been transported from Denmark to the workshop in Barcelona and refurbishment has now commenced following a full inspection by Rame. New ABB power electronics, which improve power quality and delivery, have also been delivered to Barcelona. The turbine blades and towers are in Denmark ready for overhaul and are scheduled to be ready for shipment towards the middle of June.
Rame CEO Tim Adams commented “I am delighted to have reached financial close on this agreement under which Rame retains a 25% equity interest in the Project. There is a clear synergy between Rame and Anden Re. and our close partnership has enabled this project to proceed with robust economics. This solidifies Rame’s position as market leader in the provision of short term off-grid PPAs and I look forward to giving further updates as the project progresses.”
