MetalNRG PLC Italian Waste to Energy transaction update (4620C)
June 21 2021 - 1:00AM
UK Regulatory
TIDMMNRG
RNS Number : 4620C
MetalNRG PLC
21 June 2021
THIS ANNOUNCEMENT, INCLUDING THE INFORMATION CONTAINED IN IT, IS
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OR DISTRIBUTION WOULD BE UNLAWFUL.
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF EU REGULATION 596/2014 (WHICH FORMS PART OF
DOMESTIC UK LAW PURSUANT TO THE EUROPEAN UNION (WITHDRAWAL) ACT
2018 ("EUWA")) ("UK MAR").
21 June 2021
MetalNRG plc
(The "Company" or "MetalNRG")
Financial Close of MetalNRG's participation in the
recommissioning of Italian waste-to-energy plant with EQTEC
technology
MetalNRG plc (LON:MNRG), the natural resources and energy
investment company is pleased to announce that, further to its
announcement of 17 May 2021 relating to the acquisition and planned
recommissioning of the EQTEC Italia MDC waste-to-energy plant (the
"Project"), the binding legal documentation for financial close
(the "Investment Agreement") was signed on 18 June 2021.
MetalNRG is part of a consortium of co-investors, led by EQTEC
plc ("EQTEC"), which includes an Irish Family Office and an Italian
Family Office (together the "Parties"), which recently formalised
the intention to recommission the 1 MWe biomass-to-energy plant in
Tuscany, Italy (the "Plant").
The facility is built around EQTEC technology and EQTEC Italia
MDC will transform straw and forestry wood waste sustainably
sourced from local farms and forests into green electricity and
heat for the local community.
MetalNRG has now invested a total of Euro 700,000 for a 26.66%
equity interest in the Project.
Highlights:
-- EQTEC is leading the consortium (made up of the Parties)
which is participating in the Special Purpose Vehicle ("SPV"),
entitled EQTEC Italia MDC Srl;
-- The Parties, excluding EQTEC, have jointly committed to and
now paid an aggregate EUR2.1m for an 80% equity interest, with
EQTEC holding the remaining 20% equity interest in the SPV for a
capital contribution of EUR482,000 ;
-- Once the Plant is operational, which is expected by Q2 2022,
EQTEC Italia MDC Srl is expected to generate annual revenues of c.
EUR2,000,000 and EBITDA of c. EUR750,000; and
-- EQTEC has a call option to acquire some or all of the
remaining equity in the Project at a fixed price during the first
two years from the date of financial close. MetalNRG and the other
Parties have a put option to sell some or all of their equity in
the Project to EQTEC at a fixed price for the first two years of
operations. Both the call and put options are set at a fixed return
on the capitalisation amount and protect the Parties' capital
investments.
Further information about the Project
The Plant is due to be fully recommissioned and operational by
Q2 2022, with connection to Italy's national electric grid already
in place . EQTEC estimates that the Plant will generate an
unlevered IRR of 20% and annual EBITDA in excess of EUR750,000. The
EPC contractor for the Project will be COS.M.I. Srl ("COSMI"),
EQTEC's Italian delivery partner and a company with successful
experience in building EQTEC plants. COSMI is expected to commence
its role when all remaining permissions and advanced gasification
equipment are fully in place.
Rolf Gerritsen, CEO of MetalNRG, commented:
"Our strategic partnership with EQTEC has now resulted in our
first joint investment along with the two-family offices mentioned.
The sustainable waste-to-energy project meets our investment
criteria and I look forward to updating the market with progress
about this exciting project."
The person who arranged for the release of this information is
Rolf Gerritsen, the Company's Chief Executive Officer.
For further information, please contact:
METALNRG PLC - Rolf Gerritsen (Chief Executive +44 (0) 20 7796
Officer) 9060
Joint Brokers:
--------------------
PETERHOUSE CAPITAL LIMITED +44 (0) 20 7469
Guy Miller / Duncan Vasey / Lucy Williams 0930
--------------------
SI CAPITAL LIMITED
Nick Emerson +44 (0) 1483 413500
--------------------
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