Tribute Resources will acquire CAD 800,000 of shares in Minas Tidal Limited Partnership, a company recently set up by Minas Energy, International Marine Energy and Tocardo, which is 46.5% owned by Tribute.
Minas Tidal, which owns the development rights for Berth A at Fundy Ocean Research Centre for Energy (FORCE) in Canada, will test Tocardo’s technology in the Bay of Fundy in late 2017, with full deployment expected in 2018.
The project has a 15-year power purchase contract with Nova Scotia Power to sell tidal power at a price of CAD 0.53 per kilowatt hour. FORCE has subsea cables installed at Berth A as well as a substation to interconnect the generated power to Nova Scotia Power Inc.
The amount is part of a CAD 1.8 million loan from Pace Credit Union. Tribute Resources said it will utilize the funds to advance renewable energy projects and for general working capital, including the CAD 800,000 for Minas Tidal Limited Partnership acquisition.
The company obtained 46.5% stake in Tocardo in July.