RE Royalties Ltd. announced that it has acquired a gross revenue royalty on the 27 MWDC (20 MWAC) Jackson Center Solar Project Phase, located in Mercer County, Pennsylvania, under development by Teichos Energy LLC. Once operational, Jackson Center will generate an estimated 42,800 MWh per year of clean energy. The Company has entered into a secured loan agreement with Teichos whereby the Company will provide a USD 1.8 million letter of credit on behalf of Teichos to meet their security requirement with PJM Interconnection.

The Loan will have an initial 6-month term and bear an interest rate of 13% per annum, compounded annually, and payable at the end of the term. The Loan can be extended for two additional 6-month terms. The Company will have first-ranking security interest over the Project including a lien over Project assets, and a pledge of ownership in the Project. The Company will receive a 1% gross revenue royalty on the Project for a period of 15 years once the Project reaches commercial operation.

If the Loan term is extended, the Royalty will increase to 1.5% (6-month extension) or 2% (12-month extension).