Altius Minerals Corporation (TSX:ALS) (OTCQX:ATUSF) ("Altius") is pleased to announce the signing of a share purchase agreement with Northampton Capital Partners ("Northampton") and certain funds managed by affiliates of Apollo (NYSE:APO) (the "Apollo Funds"). Under the agreement, the Apollo Funds will sell their membership interests in Great Bay Renewables Holdings, LLC and Great Bay Renewables Holdings II, LLC (collectively, "GBR") to Northampton for total consideration of approximately US$390 million. Northampton will simultaneously sell its interest in Altius Renewable Royalties Corp. ("ARR"), through which it currently holds its indirect interest in GBR, to Altius.
Under the tripartite transaction, Altius will increase its effective interest in GBR from 29% to 50% while Northampton will increase its effective GBR interest from 22% to 50%. Prior to the closing of the transaction, GBR is held equally by Apollo Funds and ARR, with ARR in turn being owned by Altius (57%) and Northampton (43%). The transaction structure involves the acquisition by Northampton of Apollo Funds’ direct 50% interest in GBR while Altius will concurrently acquire Northampton’s minority interest in ARR.
The purchase consideration payable by Altius for the remainder of ARR is US$168 million and will be funded through existing liquidity. The purchase consideration will include partial utilization of existing credit facilities. These facilities are currently being adjusted and expanded to reflect the balance sheet integration of Altius’s recently completed acquisition of Lithium Royalty Corp.