Atlantis Resources PLC (LON:ARL), which is transforming into a diversified renewable energy company, is set to sell its 50% stake in its Canadian joint venture to partner DP Energy.
The cash deal will allow Atlantis to focus on other opportunities in the UK, Europe and Asia, the company said, while DP Energy will further focus on the successful development of the tidal in-stream power generation sector in Nova Scotia.
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Atlantis said it would still continue to take part in all future tenders in Canada as an equipment and services supplier.
"I am pleased that we have agreed this sale with DP Energy. They have experience and presence in Canada and are well suited to delivering successful projects in Nova Scotia," said Tim Cornelius, the chief executive of Atlantis.
He said the firm could then focus on the successful development programme at Meygen in Scotland and pursue ambitions to develop on "identified opportunities in France, South Korea, The Philippines and other South East Asian locations".
"Following completion of this transaction, Atlantis will continue to actively offer and market its world leading turbine systems, subsea connection equipment, offshore construction and project management services to all developers in Nova Scotia at FORCE and as the larger arrays are built out in the Bay of Fundy. Canada remains an important growth market for the group, he added.
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Last month, Atlantis agreed to acquire SIMEC Uskmouth Power Limited (SUP) from SIMEC UK Energy Holdings Limited, a GFG Alliance company, the owner of a 220 megawatt capacity power plant in South Wales, which will be converted to use an end-of-waste energy pellet as fuel.
Atlantis plans to change its name to SIMEC Atlantis Energy Ltd and told investors: "The transaction is anticipated to be the first of a number of acquisitions from the GFG Alliance that will transform Atlantis into “a diversified renewable energy company of scale owning high quality development and generating assets across the sustainable energy spectrum, supplementing its existing portfolio of assets.”