Atlantis Resources has announced plans to raise £20 million through the placement of up 57.1million shares. With some of the funds raised, Edinburgh-based Atlantis will pay down debt, and plans to purchase and convert a power station in Uskmouth, South Wales from Simec, the energy arm of GFG Alliance.

The UK-based developer, which also delivered the pioneering MeyGen marine energy project, announced this morning (21 May) it is proposing placing up to 57,142,857 new ordinary shares at 35 pence per share to raise up to £20 million.

In return for the Uskmouth plant, Simec will receive a 49.9 per cent share in Atlantis, which will be renamed Simec Atlantis Energy and become part of the GFG Alliance, with the aim of building a “diversified renewable energy company of scale”.

It said this week it has agreed “further definitive documentation” with regards to the acquisition, which is scheduled to be published tomorrow (22 May).

Atlantis said several power purchase and fuel supply agreements have been signed for the power station, and it is working towards a mid-2019 investment decision, with a view to completing the deal, (which is classed as a reverse takeover), in 2020.

The Uskmouth power station will be converted from a coal-fired operation. In the future it will burn energy pellets made from non-recyclable waste.

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