(Alliance News) - Regency Mines PLC said Friday its investee Allied Energy Services has entered an exclusivity agreement with the leaseholder of the Southport Energy Centre in Liverpool, UK.
The agreement will grant Allied Energy a period of exclusivity for three months over phase one of the project, during which time the unnamed leaseholder will refrain from entering any agreement that prevents Allied from executing a commercial lease.
Phase one of the centre is expected to comprise the leasing and installation of up to 9 megawatts of gas-powered electricity generation, alongside the installation of containerised batteries with 2 megawatts of storage capacity.
Allied Energy Services is 80%-owned by Regency Mines subsidiary EsTeq Ltd.
"Continuing progress has been made at AES over the past months, as we move closer to financial close and construction start of phase one of the project. Putting a period of exclusivity and a right of first refusal in place with the leaseholder of the first site protects our interests as we assist AES in lining up the debt and equity commitments required to proceed. All funding is currently planned to be raised through a special purpose vehicle , with further SPVs utilized on subsequent projects," said Chief Executive Scott Kaintz.
Also on Friday, Regency Mines said that HSBC Global Custody Nominee UK Ltd now holds a 10.8% stake in the company, while Jarvis Investment Management has disposed of its 10% interest.
Shares in Regency Mines closed 9.1% lower at 0.050 pence on Friday in London.
