Atlantis Resources is to raise £20m through a share placing aimed ahead of its proposed reverse takeover by GFG Alliance subsidiary Simec Energy.
The placing will fund the £5m FEED study of the conversion of Simec’s mothballed Uskmouth co-firing plant in south Wales to a 242MW facility run on waste-derived pellets.
Atlantis expects the £185m conversion will be online by the end of 2020 based on a final investment decision slated for mid-2019.
The 35 pence-per-share placing of around 57m shares will also pay down up to £3.87m of debt and be used for tidal project and technology development.
Atlantis agreed last December to acquire the Uskmouth plant in return for Simec owning a 49.99% share of the Edinburgh tidal outfit to be renamed Simec Atlantis Energy.
Atlantis shares are currently suspended but are expected to resume trading on AIM on 15 June, when the acquisition is due to be completed.
The company will have first offer on a portfolio of renewable generation assets owned or to be subsequently acquired by metals tycoon Sanjeev Gupta’s GFG Alliance.
The pipeline comprises a number of assets in the UK and Australia with a total gross generation capacity of 680MW.
Image: AR1500 at MeyGen 1A (Atlantis)
Atlantis eyes £20m injection
By EBS