March 11 (Renewables Now) - Altius Minerals Corporation (TSE:ALS) said on Tuesday it will provide an initial royalty financing of USD 35 million (EUR 30.9m) to Apex Clean Energy that will go for a portfolio of wind and solar projects in North America.
The agreement has been signed by Altius Renewable Royalties Corp, a renewables subsidiary of the mining royalty and mineral project generation group. The investment has been funded from Altius’ existing cash.
Currently, Apex has about 12.5 GW of wind and 8.5 GW of solar photovoltaic (PV) development assets, according to the press release. With the fresh funds, the company will be able to speed up the development of this portfolio and expand it by adding more projects. Late-stage projects that are subject to sale, financing or construction commitments are not covered by the arrangement.
As individual projects reach commercial production, Altius will receive gross revenue royalties until such time as a sufficient number have been conveyed to meet a minimum royalty vesting threshold. It estimates that the ARR royalty portfolio will bring between USD 3 million and USD 4 million in new annual royalty revenues
(USD 1.0 = EUR 0.884)