Regency Mines PLC (LON:RGM) has struck a deal to acquire a 50% interest in Weirs Drove Development Ltd (WDD), a developer of energy storage and solar projects in the United Kingdom.
The venture starts with an initial site in Cambridgeshire. This flagship project, in Burwell, will be for 30 megawatts and benefits from an offtake with a subsidiary of Shell New Energies, Litejump Ltd.
Regency is acquiring the stake via its Flexible Grid Solutions division and it is paying £25,000 in cash for the acquisition and commits to lend £100,000 once the first project becomes ‘shovel ready’ which is expected soon.
To support this new activity, Regency is raising £200,000 with a share placing arranged by the company at a placing price of 1p per share, a 5.3% premium to Thursday’s closing price. The principles of Weirs Drove Development participated in the share placing, taking £30,000 of the shares.
“We are delighted to expand our flexible grid solutions business with multiple new UK projects, several of which have early potential to be revenue-generating and one of which comes with an offtake offer from Limejump, a Shell subsidiary,” Scott Kaintz, Regency chief executive said in a statement.
“This acquisition is intended to deliver our key corporate objectives of near-term cash generation and follows our recent discounted debt acquisition bolstering our Battery Metals business, which is already benefitting from recent encouraging movements in Nickel prices.
“The Flexible Grid Solutions division, with its low-risk near-term cash flow potential in the UK, continues to offer Regency investors an attractive balance to the significant blue-sky upside of the Company's battery metals mining portfolio,” he added.