Other deals this week include M&A, financing deals in mining, energy sectors
SNC-Lavalin joint venture has signed $1.3 billion agreement to refurbish the world’s largest operating nuclear facility. Also in this week’s deals roundup are M&A and financing deals in mining and energy sectors.
SNC-Lavalin joint venture signs $1.3 billion deal with Bruce Power
SNC-Lavalin Nuclear Inc. announced that Shoreline Power Group, a contractual joint venture between SNC-Lavalin, Aecon, and United Engineers & Constructors, has signed a 1.3 billion agreement with Bruce Power to extend the life of four of Bruce Power's CANDU® reactors to 2064. Representing Ontario’s largest clean-energy infrastructure project, the life-extension process of the reactors secures 30 percent of Ontario’s power supply.
SNC-Lavalin's portion of the contract is valued at approximately $173 million. The scope of work for the latest agreement includes the overhaul of the core reactor components of the CANDU units. Housed in the world’s largest nuclear facility, Bruce Nuclear Generating Station, the four reactors are the remaining units that have yet to undergo a life-extension process.
“The critical role of nuclear power in providing energy security, meeting the ever-increasing demand for electricity and a means to achieving global Net Zero commitments is no longer in dispute,” said SNC-Lavalin President and CEO Ian L. Edwards. “Large reactors in particular will play a key role in providing the vast amount of electricity required in the future. As the steward of the CANDU reactor technology around the world, and a provider of the full lifecycle of nuclear services, we are well positioned to capitalize on the rising demand for nuclear energy.”
“This contract win is not only a demonstration of the confidence that Bruce Power has in our technical knowledge as the steward of CANDU technology, but also in our track record in delivering work that is on-time, and on-budget,” said Joe St. Julian, President, Nuclear, SNC-Lavalin. “SNC-Lavalin is the only organization that has taken a leading role in all CANDU reactor life extension projects to date globally. We will continue to deploy our global experience and implement best practises to ensure we drive continuous efficiencies on cost and schedule performance to make these upcoming life-extensions an even greater success." “
Preparatory work is expected to commence in 2023, with completion anticipated in 2032.
Silvercorp to acquire Celsius for $58.5 million
Silvercorp Metals Inc. has entered an agreement to acquire Australian mining firm Celsius Resources Limited for approximately $58.5 million (A$65.6 million)
Upon deal completion, Maalinao-Caigutan-Biyog (MCB), Celsius’ advanced-stage copper-gold project in the Philippines, will be added to Silvercorp’s portfolio of underground silver mining operations.
The MCB project is located in the Cordillera Administrative Region of the Philippines, 320km north of Manila, and is well suited for extensive mining.
Celsius shareholders will also receive shares in a new exploration company called Spinco. This will own all rights and interests in the Philippines and Namibia projects, including Sagay and Opuwo, respectively.
“The addition of the MCB Project to our growing project portfolio aligns with our strategic objectives of diversifying and growing our asset base and will position us to benefit from copper’s strong fundamentals, a key ingredient in the green energy revolution,” said Silvercorp Metals chairman and CEO Rui Feng. “We believe this is a rare opportunity to leverage our underground mining expertise and financial strength to unlock value for all shareholders through the development of the MCB Project, as well as aggressive exploration programmes in the Pacific Rim Metallogenic Belt, one of the most important porphyry copper-gold belts in the world.”
Exro announces $30 million bought deal financing
Exro Technologies Inc., a Calgary-based clean-technology firm that develops new generation power-control electronics that expand the capabilities of electric motors and batteries, has entered into an agreement with a syndicate of underwriters co-led by Canaccord Genuity Corp., Stifel Nicolaus Canada Inc., and Eight Capital on behalf of a syndicate of underwriters.
The underwriters have agreed to purchase, on a bought deal basis, 13,500,000 common shares in the capital of Exro for gross proceeds of approximately $30 million. Exro has granted the underwriters an option to purchase additional shares valued up to $4.5 million.
Exro intends to use the net proceeds to meet the capital expenditure and working capital obligations associated with the DCA with Linamar Corporation and for general working capital purposes.
The deal is expected to close on or about May 23, 2023, subject to certain regulatory conditions.