MetalNRG PLC Italian Waste to Energy transaction update (4620C)

TIDMMNRG

RNS Number : 4620C

MetalNRG PLC

21 June 2021

THIS ANNOUNCEMENT, INCLUDING THE INFORMATION CONTAINED IN IT, IS RESTRICTED AND IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, OR THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH SUCH PUBLICATION, RELEASE OR DISTRIBUTION WOULD BE UNLAWFUL.

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF EU REGULATION 596/2014 (WHICH FORMS PART OF DOMESTIC UK LAW PURSUANT TO THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("EUWA")) ("UK MAR").

21 June 2021

MetalNRG plc

(The "Company" or "MetalNRG")

Financial Close of MetalNRG's participation in the recommissioning of Italian waste-to-energy plant with EQTEC technology

MetalNRG plc (LON:MNRG), the natural resources and energy investment company is pleased to announce that, further to its announcement of 17 May 2021 relating to the acquisition and planned recommissioning of the EQTEC Italia MDC waste-to-energy plant (the "Project"), the binding legal documentation for financial close (the "Investment Agreement") was signed on 18 June 2021.

MetalNRG is part of a consortium of co-investors, led by EQTEC plc ("EQTEC"), which includes an Irish Family Office and an Italian Family Office (together the "Parties"), which recently formalised the intention to recommission the 1 MWe biomass-to-energy plant in Tuscany, Italy (the "Plant").

The facility is built around EQTEC technology and EQTEC Italia MDC will transform straw and forestry wood waste sustainably sourced from local farms and forests into green electricity and heat for the local community.

MetalNRG has now invested a total of Euro 700,000 for a 26.66% equity interest in the Project.

Highlights:

-- EQTEC is leading the consortium (made up of the Parties) which is participating in the Special Purpose Vehicle ("SPV"), entitled EQTEC Italia MDC Srl;

-- The Parties, excluding EQTEC, have jointly committed to and now paid an aggregate EUR2.1m for an 80% equity interest, with EQTEC holding the remaining 20% equity interest in the SPV for a capital contribution of EUR482,000 ;

-- Once the Plant is operational, which is expected by Q2 2022, EQTEC Italia MDC Srl is expected to generate annual revenues of c. EUR2,000,000 and EBITDA of c. EUR750,000; and

-- EQTEC has a call option to acquire some or all of the remaining equity in the Project at a fixed price during the first two years from the date of financial close. MetalNRG and the other Parties have a put option to sell some or all of their equity in the Project to EQTEC at a fixed price for the first two years of operations. Both the call and put options are set at a fixed return on the capitalisation amount and protect the Parties' capital investments.

Further information about the Project

The Plant is due to be fully recommissioned and operational by Q2 2022, with connection to Italy's national electric grid already in place . EQTEC estimates that the Plant will generate an unlevered IRR of 20% and annual EBITDA in excess of EUR750,000. The EPC contractor for the Project will be COS.M.I. Srl ("COSMI"), EQTEC's Italian delivery partner and a company with successful experience in building EQTEC plants. COSMI is expected to commence its role when all remaining permissions and advanced gasification equipment are fully in place.

Rolf Gerritsen, CEO of MetalNRG, commented:

"Our strategic partnership with EQTEC has now resulted in our first joint investment along with the two-family offices mentioned. The sustainable waste-to-energy project meets our investment criteria and I look forward to updating the market with progress about this exciting project."

The person who arranged for the release of this information is Rolf Gerritsen, the Company's Chief Executive Officer.

For further information, please contact:

 
 METALNRG PLC - Rolf Gerritsen (Chief Executive    [phone] 
  Officer)                                          9060 
 
   Joint Brokers: 
                                                  -------------------- 
 PETERHOUSE CAPITAL LIMITED                        [phone] 
  Guy Miller / Duncan Vasey / Lucy Williams         0930 
                                                  -------------------- 
 SI CAPITAL LIMITED 
  Nick Emerson                                     [phone] 
                                                  -------------------- 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

UPDFIFLARDIALIL

(END) Dow Jones Newswires

June 21, 2021 02:00 ET (06:00 GMT)