Etrion Corp. has signed a letter of intent with Atacama Minerals Chile S.C.M. to build, own and operate an 8.8 MW solar project at the Aguas Blancas iodine mine in Chile.
Etrion will sell electricity to the Aguas Blancas mine under a long-term power purchase agreement (PPA), which is expected to be finalized by March. The total project cost – including costs related to the licenses, permits, development and construction – is estimated to be less than $20 million. A portion of that cost is expected to be financed through nonrecourse project financing, with the remaining equity portion to be funded by Etrion.
Construction of the Aguas Blancas Solar Project is subject to a definitive PPA between the parties, Etrion's arranging of the necessary debt and equity financing, and other conditions customary for transactions of this nature, including all necessary regulatory approvals.