LONDON: Corcel Plc, the natural resource exploration and development company with interests in battery metals and flexible grid solutions, announced the acquisition of a 40% interest in the “shovel ready” Tring Road 50MW gas peaking project outside of Aylesbury from Arlington Energy Limited.

The Company further announced its intention to explore and discuss with AE the potential, subject to agreement on terms, to co-develop and fund additional flexible energy assets in the United Kingdom. 

Chief Executive Officer, Scott Kaintz commented: “This is a highly significant milestone for Corcel. The addition of the “shovel ready” Tring Road project to our existing Burwell project dramatically bolsters our position in the increasingly competitive flexible energy space here in the UK. We believe that gas peaking assets of this nature are essential to assist the transition to renewables and will provide significant trading margins given the variability of renewable energy production and the inherent volatility of UK energy demands.

I am also excited by the opportunity of exploring a broader strategic partnership with Arlington Energy, which, if agreed, would provide Corcel with additional AE flexible energy investment opportunities.”

Corcel has acquired a 40% interest in the Tring Road energy project from Arlington Energy (AE), located outside of the town of Aylesbury, England. Consideration for the acquisition is £400,000 satisfied by £150,000 cash and 12,026,168 new Ordinary Shares. The Shares will be locked up for a period of six months following admission. 

Corcel and AE have formed an industry standard joint venture to operate the project and will look to jointly arrange funding for the project over the coming months, targeting financial close later in 2021.

It is anticipated that AE will continue to lead construction and the operation of the project. The joint venture partners intend to procure a development fee at financial close as well as an equity carry as part of ultimate arrangements negotiated. In addition, Corcel is expected to receive a 3% fee covering all equity funding arranged.

Corcel has also agreed to AE having standard industry drag along rights from end September 2021, in the event that the parties have not arranged funding for the project by that stage.

The Tring Road project is a 50MW gas peaking project located approximately 40 miles northwest of London. The project is “shovel ready”, with a 50MW grid connection already secured allowing primarily export of electricity and a binding option to lease signed with the landowner and planning permission also secured.

The Company, following comprehensive due diligence on the project, has received third party estimates of annual gross margins of between £103-147k per MW/per annum once the project is operational.     

Although formal terms have yet to be finalized, Corcel and AE will explore and discuss the potential to develop additional energy storage, gas peaking and solar assets in the United Kingdom with a view to Corcel participating in future AE projects in the UK flexible energy sector.

Application is being made to AIM of London Stock Exchange for 12,026,168 new Ordinary Shares to be admitted to trading on AIM, which will rank pari passu with the Company’s existing issued ordinary shares. Dealings are expected to commence on or around 14 May 2021.

Following the issue of the 12,026,168 new Ordinary Shares, the issued share capital of the Company consists of 357,547,532 ordinary shares of £0.0001 each with voting rights. No ordinary shares are held in Treasury.

The above figure of 357,547,532 may then be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company under the Disclosure and Transparency Rules.