16 Jan 2014 09:26
16 January 2014
Plutus Resources plc
("Plutus" or the "Company")
Acquisition of interest in Attune Energy Ltd
The Company is pleased to announce the acquisition of a 25% interest of Attune Energy Ltd. ("AEL").
AEL is a newly formed company set up for the purpose of generating power from flexible stand by power generation farms and generate revenues through the sale of this power to established national energy suppliers during periods of peak electricity demand or grid instability. It is expected by the directors of Plutus that AEL will be able to derive significant revenue from: 1.transmission network payments ("Triad" payments); 2. balancing payments in the STOR (Short Term Operating Reserve) market during periods of peak demand and 3. other power sales to customers.
AEL has a management team with a demonstrable track record of securing significant Enterprise Initiative Scheme ("EIS") funding for the fixed cost element of the construction of diesel generation farms, obtaining sites with planning permission with easy connectivity to the National Grid as well as successfully tendering for National Grid contracts for this form of specialised energy sales.
The Plutus directors' believe that the market opportunity arises from the constraints inherent in the National Grid electricity transmission network where flexible power generation has an increasing role to play particularly when power stations continue to close and it will be many years before new nuclear and other power stations will be built in the UK.
Whilst AEL has yet to generate revenues, the business plan of AEL assumes that within 6 months it will have secured contracts for construction and on-going tendering and Operations & Management of STOR facilities for EIS funded entities and services contracts for the tender and operations of STOR capacity for B2B energy efficiency companies. In addition, and subject to securing the necessary funding and planning permissions, the Plutus directors expect AEL to be constructing, tendering and operating STOR facilities in its own right within the same period.
Consideration for the investment in AEL is £125,000 which shall be satisfied in full by the issuance of 20,833,333 new ordinary shares of 0.1 pence each in the Company ("Ordinary Shares") to AEL representing an issue price of 0.60p per share (the "Consideration Shares"). Application will be made for the Consideration Shares to be admitted to trading on AIM ("Admission") and it is expected that Admission will become effective at 8.00 a.m. on 22 January 2014. The Consideration Shares being issued to AEL will represent approximately 12.7 per cent. of the enlarged issued ordinary share capital of the Company immediately following Admission.
Following Admission the Company will have 164,255,215 Ordinary Shares in issue. This figure may be used by shareholders in Plutus as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the FCA's DTR Rules.
Following this investment, both Charles Tatnall and James Longley will become directors of AEL and it is intended that AEL's name will be changed to Plutus Energy Limited with immediate effect.
Charles Tatnall, CEO stated: "We are very pleased to be making this strategic investment in the Stand-By Power Generation sector which we believe has huge potential for growth. This is the first investment which we have made in line with our investing policy."
Enquiries:
Plutus Resources plc
Charles Tatnall, Executive Director Tel: 020 7582 6598
James Longley, Finance Director
Allenby Capital Limited
(Nominated adviser and broker)
Mark Connelly Tel: 020 3328 5656
Nick Athanas