As per the terms of the agreement, LeadDog Capital has committed to provide up to $30m in new capital in exchange for newly issued Blue Castle common stock. The financing will take place in multiple tranches over a three year period. The schedule for stock purchases is to be established at the sole discretion of Blue Castle.
Aaron Tilton, CEO of Blue Castle, said: “This agreement provides Blue Castle with a flexible financing option that allows Blue Castle to raise and deploy capital when necessary and only under optimum conditions. The structure of this capital is very complimentary to our licensing schedule.”
The Blue Castle Project is considered a new nuclear deployment project in the Western US. Blue Castle has secured difficult to obtain water leases essential for running a nuclear power plant. The planned site is located in Emery County, and zoning has been changed to accommodate the nuclear plant project.
The project is in the Nuclear Regulatory Commission’s budget cycle to begin the site permit application licensing review in 2011. The Blue Castle project has attracted the interest of over 15 utilities, which would represent 4500MWe of interest in the project.
The Blue Castle Project provides an economic option to utilities for participation in a fully licensed new nuclear plant project at an acquisition cost of 4-7% of the station’s estimated construction cost. Blue Castle plans to maintain a long term equity position in the project as a merchant developer.
