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Altius to make USD-30m royalty investment in Tri Global wind projects

Wind farm. Author: Samir Luther. License: Creative Commons, Attribution-ShareAlike 2.0 Generic

February 7 (Renewables Now) - A newly-formed renewables subsidiary of Altius Minerals Corporation (TSE:ALS) has signed a deal to buy USD 30 million (EUR 26.4m) worth of future royalties from Tri Global Energy LLC (TGE) related to a portfolio of wind projects in the US.

Under the terms of the agreement, the Dallas-based wind projects developer will commit its current 1.5-GW-plus portfolio of development schemes, excluding assets already vended, to this new royalty investment structure. The portfolio includes projects located in Texas, Nebraska and Illinois.

Altius Renewable Royalties Corp (ARR) will invest USD 7.5 million upon closing of the deal and contribute the remainder over the next three years. In exchange, it will receive a 3% gross revenue royalty on each project until a minimum total royalty portfolio valuation threshold is reached.

ARR estimates that the portfolio will generate between USD 3 million and USD 4 million in new annual royalty revenues once the target threshold is met.

Altius’ renewables arm has also acquired a Great Bay Renewables Inc as part of its founding. This private firm holds a paying royalty on the 4.7-MW Clyde River hydroelectric/solar facility located in Vermont, the announcement says.

(USD 1.0 = EUR 0.881)

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Ivan is the mergers and acquisitions expert in Renewables Now with a passion for big deals and ambitious capacity plans.

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