- Maxim Power Corp. (MXG) will receive grant funding of $20 million
- The grant is for waste heat recovery on the M2 Combined Cycle Gas Turbine expansion project
- The CCGT expansion of M2 will reduce the intensity of carbon emissions by more than 60 per cent compared to the legacy coal-fired H.R. Milner facility
- Also Maxim amended the terms of its senior credit facility to allow for an increase to its NCIB limitations from $1.0 million to $2.5 million for the 2022 calendar year
- MAXIM is one of Canada’s largest truly independent power producers
- Maxim Power Corp. opened trading at $3.06
Maxim Power Corp. (MXG), through a wholly-owned subsidiary, will receive $20 million in grant funding.
The funding supports the corporation’s Combined Cycle Gas Turbine (CCGT) expansion of the Milner 2 (M2) project, which will capture waste heat that would otherwise escape into the atmosphere and cause pollution.
This project will turn the heat into useful low-carbon electricity for the Alberta power grid.
All of the proceeds from the grant will be used as funding for the project.
The project is expected to commence operation by December 2022.
The company projects that it has sufficient liquidity to complete the CCGT expansion of M2 and will fund the project using funds from the grant, cash on hand, cash flow from operating revenues and available funds through the existing senior and subordinated credit facilities, as required.
The CCGT expansion of M2 will reduce carbon emissions by more than 60 per cent compared to the legacy coal-fired H.R. Milner facility.
In addition, Maxim reported that in June it amended the terms of its senior credit facility to allow for an increase to its normal course issuer bid (NCIB) limitations from $1.0 million to $2.5 million for the 2022 calendar year.
Maxim will recommence payments to its $28.5 million bank term facility #1, under the senior credit facility, for $0.7 million quarterly.
The first quarterly payment will occur in August 2022 followed by regular quarterly payments commencing at the end of the third quarter 2022.
MAXIM is one of Canada’s largest truly independent power producers.
Maxim Power Corp. opened the day’s trading at $3.06 per share.