Tribute Resources establishes newco to develop tidal power in Canada and abroad

Tribute Resources Inc. has established a new corporation called International Marine Energy Inc. (IME). IME has acquired the interests of Tribute in Western Tidal Holdings, (WTH).

By K.Steiner-Dicks on Nov 26, 2014

Tribute Resources Inc. has established a new corporation called International Marine Energy Inc. (IME). IME has acquired the interests of Tribute in Western Tidal Holdings, (WTH).

Tribute intends to develop all further tidal power projects in Canada and internationally within IME. IME is currently a wholly owned subsidiary, but Tribute is in negotiations with third parties to source financing and development expertise.

IME has been initially funded by a cash share contribution of $1m from Tribute. IME has assumed the interest of Tribute in Fundy Tidal Inc. (Fundy Tidal) and its projects. IME and Fundy are developing the 1.95MW small-scale tidal COMFIT project awarded to Fundy Tidal by the Province of Nova Scotia located at Digby, Nova Scotia, in the Digby Gut Limited Partnership.

Both IME and Fundy Tidal will form and manage the project team to work with Dutch-based tidal turbine producer, Tocardo International BV, to commission the project which may include the installation of up to 16 of their T200 turbines and the design and development of a floating barge platform to house them.

The Digby Gut project is one of three COMFIT projects under development in Digby County by Fundy Tidal. IME and Fundy Tidal have also entered into a Right of First Refusal Agreement to develop and finance all current COMFIT projects and to collaborate on future projects in Atlantic Canada.

On November 6, 2014, IME closed the purchase negotiated by Tribute for a minority equity interest in Fundy Tidal shares. Fundy Tidal has elected two representatives of IME to its Board of Directors, which include Tribute President Jane Lowrie and IME Vice President Peter Budd. In addition, Jennifer Lewis, the CFO of TRB will also be appointed CFO of Fundy Tidal.

The purchase price for a 20% share interest in Fundy Tidal is the sum of $1,195,500. IME paid $597,750 on closing and will pay the balance on financial close of the Digby Gut Limited Partnership.

Tribute decided to expand its horizons in the renewable energy market by taking advantage of an opportunity to invest in tidal power. In December 2012 and January 2013, Tribute purchased shares in Western Tidal Holdings Ltd. (“WTH”) to further explore the development opportunities and expand their renewable energy portfolio, both through investing in new forms of energy projects and through expanding their holdings geographically.

In August, 2013, Tribute completed a purchase of all of the remaining shares in WTH and its subsidiary, Western Tidal Power Ltd. (“WTP”). The remaining shares were purchased through a share exchange whereby Tribute issued 7,189,950 shares from treasury. WTH was then a wholly owned subsidiary of Tribute.

WTH is a British Columbia start-up renewable energy development company focusing on developing tidal power energy in B.C.. With the addition of new licenses in the coastal waters and a fresh investigative agreement with local First Nations, WTH has over 330 MW of early stage tenure applications and/or licenses for tidal power usage in place with the B.C. provincial government.

The power project, once completed, will connect to the BC Hydro electrical transmission and distribution networks. British Columbia has over 4,000 MW of estimated tidal resources of which 10 to 20% meet present regulations, environmental and technical conditions, such as access to the B.C. Hydro distribution and transmission grids.