Rame raises Chile projects funding

UK-based developer Rame Energy has raised £750,000 ($1.24m) through an ordinary share placement to support development of four wind projects in Chile totaling 118 MW of nameplate capacity.

The company says that both new and existing private and institutional investors acquired 4,838,710 new ordinary shares at 15.5p per share on the London Stock Exchange AIM market.

The funding will support due diligence required by Banco Santander as a precondition to it providing $69m in equity financing for the projects.

This includes accelerating various final studies and obtaining remaining permits, as well as taking additional wind measurements at the proposed project sites.

Under terms of its agreement with Santander, the bank would acquire each project for an already-agreed price per MW and provide between 80% and 90% of the required equity capacity for the development.

“The ability to accelerate these four projects and the opportunity to bring them on stream together creates greater economies of scale, which should result in better returns,” says Rame chief executive Tim Adams.

Rame aims to become a niche independent power producer targeting an operational portfolio of 300MW in Latin America within three years.