Montem Resources Ltd (ASX:MR1) has completed a placement of approximately A$3 million at A$0.051 per share, with funds raised to be used to advance feasibility studies for its Tent Mountain Renewable Energy Complex (TM-REX) in Alberta, Canada, and working capital.
The placement price of A$0.051 per share is a 13.6% discount to the last close price and a 21.8% discount to the 15-day VWAP of the company’s shares (both calculated over the period ending December 15, 2021).
MR1 could receive a further C$5 million grant under application from Canada’s Clean Fuels Fund for its TM-REX feasibility studies. The funds are expected to be awarded in Q1 2022.
Creating a renewable energy complex
Montem is transitioning the Tent Mountain Mine to become a renewable energy complex, with the planned development to include three primary elements:
- 320MW Pumped Hydro Energy Storage
- 100MW Green Hydrogen Electrolyser
- 100MW Wind Farm (offsite).
To facilitate the transition, the Tent Mountain Energy Transition Steering Committee was established In November 2021 and will drive development of the TM-REX.
Over the course of 2022, MR1 plans to move the TM-REX through the front-end engineering and design (FEED) project phase.
“We are pleased with the support for the placement and thank our existing shareholders for their ongoing backing. We also welcome a number of new investors to the register, and are excited by their support for the new direction we are advancing at Tent Mountain,” Montem managing director and CEO Peter Doyle said.
“Tent Mountain’s ideal topography and location provides us the ability to pivot the project to potentially become an outstanding renewable energy asset with the ability to host Canada’s first large-scale green hydrogen production facility. The pump hydro energy storage (PHES) element of the project will provide stability to Alberta’s electricity supply as it looks to further transition to renewable energy sources.”
“We are fortunate to have the ability for a second, different project at Tent Mountain, and are eager to get to work progressing TM-REX, developing a renewable energy project which has significant potential.”