Altius Announces First Renewable Energy Royalty Transaction
Date:
Ticker Symbol:
07-Feb-2019
ALS.TSX
Civic Address:
Altius Minerals Corporation
Suite 202, 66 Kenmount Road
St. John’s, NL, A1B 3V7, CANADA
Website: www.altiusminerals.com
Toll Free: 1.877.576.2209
Fax: 709.576.3441
e-mail: [email protected]
Mailing Address:
Altius Minerals Corporation
P.O. Box 8263 Stn “A”
St. John’s, NL, A1B 3N4, CANADA
Altius Announces First Renewable Energy Royalty Transaction
- US$30MM transaction with leading U.S. wind energy developer -
St. John’s - Altius Minerals Corporation (“Altius”) ( ALS:TSX, ATUSF: OTCQX) is pleased to announce that its recently
formed subsidiary, Altius Renewable Royalties Corp. (“ARR”), has entered into a transaction with Tri Global Energy , LLC
(“TGE”), to gain future royalties related to a portfolio of wind energy development projects.
Dallas-based Tri Global Energy is a leading developer of wind energy in the U.S. TGE’s goal is to develop clean energy
through the development of wind energy projects. The company has pioneered a unique way to generate local economic
benefits through the development of renewable energy projects by partnering with landowners, communities and industry -
leading investors. Its wind energy projects are traditionally vended to v arious renewable energy operating companies,
which allows TGE to focus its expertise on development initiatives. TGE is committing its current portfolio of over 1,500
megawatts (MW) of development projects, which excludes projects already vended , and any a dditional projects added in
the future, to this new royalty investment structure with Altius, until a minimum total royalty portfolio valuation threshold is
achieved. The currently committed development portfolio includes projects located in Texas, Nebraska and Illinois.
Transaction Terms
The US$30 million royalty investment into TGE will be invested in tranches over approximately the next three years as
TGE achieves certain project advancement milestones, with an initial investment upon closing of US$7.5 million.
As individual pipeline projects are developed, ARR will receive a 3% gross revenue royalty on each project . This will
continue until a target minimum total royalty portfolio valuation threshold is achieved. I t is expected that this threshold
would be met based upon a portion of the total current ly committed TGE development pipeline reaching operational
status. Once created, individual royalties will apply during the full life of the respective projects.
Using current assumptions concerning development timeframes, output levels and realized power prices, the created
ARR royalty portfolio from this investment is estimated to generate US$3 - 4 million in new annual royalty revenues once
the target threshold is met and before factoring in any potential longer -term project extensions, output expansions or
power price changes.
Funding for the TGE transaction will be provided from Altius’ available cash on hand. Depending upon the scale of the
overall opportunity set that develops for ARR, Altius may also consider adding additional future investment partners as
either direct subsidiary level participants or through the creation of limited partnership structures.
Altius Renewable Royalties
As part of its founding, ARR has acquired a private company, Great Bay Renewables, Inc. (“GBR”), which holds a paying
royalty on the 4.7 MW Clyde River hydroelectric /solar facility located in Vermont. Importantly, the GBR management will
also continue as the operational management team of ARR and lead the business of further introducing the renewable
energy royalty financing concept within the U.S. and elsewhere. This management team, led by Frank Getman (President
and CEO), has a long and successful track record of developing and operating small and large -scale renewable energy
projects.
In addition, ARR is pleased to take this opportunity to announce that Mr. Earl Ludlow has been appointed as Chairman of
the Board of Directors, joining Mr. Getman and parent level appointees of Altius Minerals Corporation that include its CEO
and CFO. Earl retired at the e nd of 2017 from Fortis Inc . which is a major international electrical utility company. Earl held
the position of Executive Vice President at retirement following successive VP Operations roles at Fortis subsidiaries
Date:
Ticker Symbol:
07-Feb-2019
ALS.TSX
Civic Address:
Altius Minerals Corporation
Suite 202, 66 Kenmount Road
St. John’s, NL, A1B 3V7, CANADA
Website: www.altiusminerals.com
Toll Free: 1.877.576.2209
Fax: 709.576.3441
e-mail: [email protected]
Mailing Address:
Altius Minerals Corporation
P.O. Box 8263 Stn “A”
St. John’s, NL, A1B 3N4, CANADA
Maritime Electric, Newfoundland Power an d Fortis Alberta and then CEO roles at subsidiaries Fortis Properties and
Newfoundland Power.
Brian Dalton, President and CEO of Altius, commented, “ Altius has now taken the creation of a royalty business based
around long-life renewable energy projects fr om concept to reality . This is an important step in executing our strategy to
ultimately replace our Alberta electrical coal royalties, which are being phased out by 2030 as a result of government
policy changes.” He then added, “ Innovating this royalty product and forging a mutually beneficial relationship with such a
successful and highly regarded renewable energy development partner like TGE is a great credit to the new ARR team.
The transaction also highlights to other sector players that royalty-based financing and partnerships with ARR are a n
attractive alternative for them as well.”
“The Tri Global Energy team is continuing its track record of strong execution and strategic growth,” said John Billingsley,
Chairman and CEO of Tri Global Energy. “2018 also was one of our best years for completing and initiating renewable
energy development projects . This transaction with Altius will accelerate our development and allow us to extend ou r
involvement in these projects though their financial closings. This investment will help power the company forward through
2021 and beyond. I believe the time is right for innovative financing products like the renewable royalty investment
provided by Altius.”
More information on the transaction and A RR, including an investor presentation , can be found at
http://www.altiusminerals.com/.
About Altius
Altius directly and indirectly holds diversified royalties and streams which generate revenue from 15 operating mines.
These producing royalties are located in Canada and Brazil and pro vide exposure to copper, zinc, nickel, cobalt, iron ore,
potash, thermal (ele ctrical) and metallurgical coal. The portfolio also includes development stage royalties in copper and
renewable energy and n umerous predevelopment stage royalties covering a wide spectrum of mineral commodities and
jurisdictions. Altius also holds a large portfolio of exploration stage projects which it has generated for deal making with
industry partners that results in newly created royalties and equity and minority interests. Altius has 42,851,726 common
shares issued and outstanding that are listed on Canada’s Toronto Stock Exchange. It is a member of both the S&P/TSX
Small Cap and S&P/TSX Global Mining Indices.
About Tri Global Energy
TGE is a leading developer of wind energy in the U.S. The company is based in Dallas , Texas. Founded in 2009, TGE’s
goal is to develop clean energy at an affordable cost through the development of wind projects. The company develops
and owns utility-scale wind projects in Texas, Nebraska, Illinois and other U.S. locations.
For further information, please contact Chad Wells ([email protected]) or
Flora Wood ([email protected]) at 1.877.576.2209