Altius Renewable Royalties Announces Resale of Projects with Existing Royalties Associated with Tri Global Energy Royalty Financing Partnership

Rhea-AI Summary

Altius Renewable Royalties Corp. (OTCQX: ATRWF) announces the re-acquisition of the 360 MW Canyon Wind project and 180 MW Flatland Solar project by Tri Global Energy, which have been resold to a buyer. Located in West Texas, both projects are under royalty agreements with Great Bay Renewables LLC. The royalty rates for Canyon Wind have been adjusted to a phased structure, while the Flatland Solar royalty changed from 1.5% to an escalating fixed payment. These adjustments will be reflected in future valuations but won't affect overall return hurdles.

Positive

• Re-acquisition of Canyon Wind and Flatland Solar projects indicates strong market interest.
• Phased royalty structure for Canyon Wind may lead to increased revenue potential.
• Strong partnership with Great Bay Renewables enhances project stability.

Negative

• None.

ST. JOHN’S, Newfoundland and Labrador--(BUSINESS WIRE)-- Altius Renewable Royalties Corp. (TSX: ARR) (OTCQX: ATRWF) (“ARR” or the “Company”), is pleased to report that the previously sold 360 MW Canyon Wind project and 180 MW Flatland Solar project (see Altius Minerals press release dated October 17, 2019), have been re-acquired by Tri Global Energy (“TGE”) and resold to an established buyer. Both projects are located in West Texas and have royalties in favour of Great Bay Renewables LLC, (“Great Bay”) which is jointly controlled by ARR and certain funds managed by affiliates of Apollo Global Management, Inc.

As part of the acquisition structuring, Great Bay agreed to adjust the royalty rates on Canyon Wind to a phased royalty of 2.0% on the first 150 MWs, 2.5% on the next 50 MWs and a 3.0% royalty on anything above 200 MWs since the project is now expected to be constructed in phases. The royalty for Flatland Solar was adjusted from 1.5% to an escalating fixed payment of equivalent value.

The royalty rate adjustments will be reflected accordingly during the post-operational valuations to be completed pursuant to Great Bay’s agreements with TGE and will not impact the overall return hurdle requirements contemplated therein.

About ARR

ARR is a recently formed renewable energy company whose business is to provide long-term, royalty level investment capital to renewable power developers, operators, and originators. ARR has 16 renewable energy royalties representing 3,510 MW of renewable power, diversified by wind, solar, stage of development or operations and regional power pool in the U.S. The Corporation combines industry expertise with innovative, partner-focused solutions to further the growth of the renewable energy sector as it fulfills its critical role in enabling the global energy transition.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220628006139/en/

Flora Wood, Corporate Secretary

Flora@arr.energy

1.877.576.2209

Direct: +1(416)346.9020

Ben Lewis, CFO

Ben@arr.energy

1.877.576.2209

Source: Altius Renewable Royalties Corp.

FAQ

What is the recent news about ATRWF regarding the Canyon Wind and Flatland Solar projects?

Altius Renewable Royalties Corp. reported the re-acquisition of Canyon Wind and Flatland Solar projects, which were sold to an established buyer via Tri Global Energy.

How have the royalty rates for Canyon Wind changed?

The royalty rates for Canyon Wind are now structured as phased royalties: 2.0% for the first 150 MWs, 2.5% for the next 50 MWs, and 3.0% for anything above 200 MWs.

Did the royalty rate for Flatland Solar change?

Yes, the royalty for Flatland Solar was adjusted from 1.5% to an escalating fixed payment of equivalent value.

What does the partnership with Great Bay Renewables mean for ATRWF?

The partnership with Great Bay Renewables provides stability and potential revenue increases from the royalties associated with the projects.