Maxim Power Corp. to receive $20 million Grant Funding for Waste Heat Recovery on Milner 2 CCGT Expansion Project
CALGARY, Alberta, July 14, 2022 (GLOBE NEWSWIRE) — Maxim Power Corp. (“MAXIM” or the “Corporation”) (TSX: MXG), through a wholly-owned subsidiary, to receive $20 million grant funding (the “Grant”) for waste heat recovery on the Milner 2 (“M2”) Combined Cycle Gas Turbine (“CCGT”) expansion project, and provides updates on its normal course issuer bid (“NCIB”) program and senior credit facility.
$20 MILLION GRANT FUNDING
On July 14, 2022, the Corporation, through a wholly-owned subsidiary, has entered into an agreement to receive grant funding in the amount of $20 million. The Corporation’s CCGT expansion of M2 (the “Project”) captures waste heat that would otherwise exhaust into the atmosphere and will turn it 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, which is anticipated to be operational by December 2022.
M2 CCGT PROJECT UPDATE
MAXIM continues to progress on the engineering and construction of the CCGT expansion of M2 and is pleased to report that the Project remains on schedule to achieve commercial operation in December 2022.
At this time, MAXIM forecasts 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 the intensity of carbon emissions by more than 60% compared to the legacy coal-fired H.R. Milner facility.
NORMAL COURSE ISSUER BID AND SENIOR CREDIT FACILITY UPDATES
In June 2022, 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. Additionally, MAXIM will recommence payments to its $28.5 million Bank Term Facility #1, under the senior credit facility, in the amount of $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.
Based in Calgary, Alberta, MAXIM is one of Canada’s largest truly independent power producers. MAXIM is now focused entirely on power projects in Alberta. Its core asset – the 204 MW H.R. Milner Plant, M2, in Grande Cache, AB – is a state-of-the-art natural gas-fired power plant that commissioned in Q2, 2020. MAXIM is currently increasing the capacity of M2 to approximately 300 MW and concurrently will realize an improvement in the efficiency of the plant by investing in heat recovery combined cycle technology. In addition, MAXIM continues to explore additional development options in Alberta including its currently permitted gas-fired generation projects and the permitting of its wind power generation project. MAXIM trades on the TSX under the symbol “MXG”. For more information about MAXIM, visit our website at www.maximpowercorp.com. For further information please contact:
Bob Emmott, President and COO, (403) 263-3021
Kyle Mitton, CFO and Vice President, Corporate Development, (403) 263-3021
This press release contains forward-looking statements and forward-looking information (collectively “forward looking information”) within the meaning of applicable securities laws relating to MAXIM’s plans and other aspects of MAXIM’s anticipated future operations, management focus, objectives, strategies, financial, operating and production results. Forward-looking information typically uses words such as “anticipate”, “believe”, “project”, “expect”, “goal”, “plan”, “intend”, “may”, “would”, “could” or “will” or similar words suggesting future outcomes, events or performance. The forward-looking statements contained in this press release speak only as of the date thereof and are expressly qualified by this cautionary statement. Specifically, this press release contains forward-looking information concerning, among other things, the expected completion date of the CCGT expansion of M2, emissions intensity, grant funding, senior credit facility payments, and MAXIM’s financing plans with respect to the CCGT expansion.
Management has included the forward-looking statements above and a summary of assumptions and risks related to forward-looking statements provided in this press release in order to provide readers with a more complete perspective on MAXIM’s future plans and operations and such information may not be appropriate for other purposes.
MAXIM’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that MAXIM will derive there from. Readers are cautioned that the foregoing lists of factors are not exhaustive. These forward-looking statements are made as of the date of this press release and MAXIM disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.