REG - ATOME Energy PLC - ATOME granted Free-Trade Zone for Villeta Project

AtomeAnnouncement

14/11/2023 07:00

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RNS Number : 2857T  ATOME Energy PLC  14 November 2023

14 November 2023

 

ATOME ENERGY PLC

("ATOME", "the Company", or "the Group")

 

ATOME granted Free-Trade Zone for Villeta Project, Paraguay

 

ATOME Energy (AIM: ATOM) ("ATOME"), the only international green fertiliser
project development company on the London Stock Exchange, is pleased to
announce that its 145MW Villeta Project in Paraguay has been granted
Free-Trade Zone status by Presidential decree bringing significant financial
benefits to the project and its funders.

 

Highlights:

·      Free-Trade Zone ("FTZ") status granted by Presidential decree to
ATOME's Villeta Project, Paraguay

·      Only the sixth FTZ granted by Paraguay

·      ATOME will benefit from exemptions on municipal, VAT, and
corporate income taxes

·      Clearly demonstrates the Paraguay Government support and
commitment to ATOME's Villeta Project

·      Paraguay country ceiling has been upgraded to BBB- in the latest
Fitch Ratings report

 

Free-Trade Zone

ATOME is pleased to announce that the Presidential decree has been signed now
granting the Villeta Project full FTZ status. This is only the sixth FTZ in
Paraguay and as a result will grant ATOME with the following benefits which
materially enhance the economics of the Villeta Project:

 

·      Exemption from VAT on:

o  Sales of goods and services from Paraguay to the FTZ

o  Import of equipment and services

o  Services provided by the concessionaire to FTZ

·      3% effective corporate income tax ("CIT") on profit derived from
domestic sales to Paraguay

·      0.5% Free Trade Zone tax on revenue from export sales, no CIT

·      Exemption from CIT and/or withholding taxes including on:

o  Remittance of profits or dividends by FTZ users to third countries

o  All payments of fees, commissions, interest, and all other remuneration on
all services, including financing, provided from third party countries to FTZ
Users

·      Exemptions from local and municipal taxes and charges

 

Strong government backing for ATOME's projects

This is an unequivocable demonstration of government support for ATOME's
Villeta Project and its determination to make the project a success both for
ATOME and Paraguay's ambition in being a world leader in green fertiliser
production. This support has been key in relation to the granting of the FTZ
and the Environmental Licence, having expeditiously passed all necessary
inter-governmental approvals, which are important milestones towards project
financing and construction of the Villeta facility.

 

Paraguay Economic performance and growth aspirations

Paraguay has political and economic stability and one of the best performing
economies in Latin America, with inflation falling sharply this year to 3% (as
of October 2023) and economic growth expected by Fitch to rebound by 5.2% in
2023. The latest Fitch Ratings report affirmed Paraguay's stable outlook at a
BB+ credit rating, one mark short of investment grade, whilst raising the
country ceiling to BBB-.

 

Peter Levine, Chair, commented:

 

"Through successive administrations it has been both consistently crystal
clear that Paraguay is open for business and encourages and supports serious
foreign investors and investments.

 

"We are greatly honoured by President Peña by his signing of the decree for
the tax-free zone in Villeta and we are grateful for the support and trust he
and his Ministers have given to us in this important landmark project for the
country of Paraguay."

 

 

For more information, please visit https://www.atomeplc.com
(https://www.atomeplc.com) or contact:

 

 ATOME Energy PLC                              +44 (0) 113 337 2210
 Nikita Levine, Investor Relations
info@atomeplc.com
 Beaumont Cornish (Nominated Adviser)          +44 (0) 20 7628 3396
 Roland Cornish, Michael Cornish
 Liberum (Joint Broker)                        +44 (0) 20 3100 2000
 Scott Mathieson, Kane Collings
 SP Angel (Joint Broker)                       +44 (0) 20 3490 0470
 Richard Hail, Harry Davies-Ball
 Cavendish Capital Markets Limited (Broker)    +44 (0) 20 7220 0500
 Simon Hicks, George Dollemore
 Tavistock (Financial PR and IR)               +44 (0) 20 7920 3150
 Simon Hudson, Charles Baister, Saskia Sizen   atome@tavistock.co.uk

 

The information communicated within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulations (EU) No
596/2014 which is part of UK law by virtue of the European Union (Withdrawal)
Act 2018. Upon publication of this announcement, this inside information is
now considered to be in the public domain. The person who arranged for the
release of this announcement on behalf of the Company was Peter Levine,
Chairman.

 

About ATOME

ATOME Energy PLC is an AIM listed company targeting green fertiliser
production with 445-megawatt of projects in Paraguay and a further pipeline of
potential projects in Central America and Iceland.

 

Since its admission to AIM in December 2021 ATOME signed a 145MW power
purchase agreement with ANDE, the state energy company in Paraguay for
acquired 30 hectares of land in Villeta, Paraguay for that facility, mandated
Natixis Corporate & Investment Banking and the multilateral IDB Invest to
lead the project funding and with Front End Engineering and Design studies
currently underway with the international companies Urbas and Casale. ANDE has
also allocated a further 300MW for ATOME's second project subject to
studies.

 

In Costa Rica, ATOME has a green fertiliser joint venture with Cavendish, the
renewable energy arm of the substantial and well-established Purdy Group based
in Costa Rica and formed The National Ammonia Corporation S.A. As well as
straddling the Pacific and Atlantic Oceans, Costa Rica is a democratic Central
American country. In agriculture, Costa Rica is the second largest supplier of
pineapples in the world and is in the top ten banana growers.

 

ATOME is in the process of operational planning, sourcing and negotiations
with green electricity suppliers, equipment providers and offtake partners,
including signed memoranda of understanding and cooperation agreements in
place with key parties, to produce green ammonia at an industrial scale using
electricity generated from existing geothermal sources in Iceland and
hydroelectric power in Paraguay and Costa Rica. All chosen sites are located
close to the power and water sources and export facilities to serve
significant domestic and then international demand.

 

The Company has a green-focused Board which is supported by major shareholders
including Peter Levine, Trafigura, one of the world's leading commodity and
logistics company, and Schroders, a leading fund manager, and since May 2023,
Baker Hughes, a global energy technology company operating in the energy and
industry sectors.

 

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