Free Trade Zone contract completed for Villeta
15 August 2024
ATOME PLC
("ATOME", "the Company", or "the Group")
Free Trade Zone contract completed for the Villeta Project
30-year term provides long-term fiscal security
ATOME (AIM: ATOM), the leading developer of international green fertiliser projects, is pleased to announce that the formal Free Trade Zone ("FTZ") contract for the Company's flagship 145MW Villeta project in Paraguay ("Villeta" or the "Project") has been executed and now completed. This follows the announcement on 14 November 2023 of the signing of the Presidential Decree authorising and directing the grant of FTZ status. The status accorded to the Villeta Project remains only the seventh FTZ to be granted by Paraguay.
The FTZ gives the Project tax free status, meaning ATOME will benefit from exemptions on municipal, VAT and corporate taxes, and provides material benefits to the economic efficiency of Villeta. Alongside the recent signing of Heads of Terms with Yara International ASA for the long-term offtake of Villeta's entire production by the international company, the FTZ further underlines the robust commercial proposition of the project.
As previously announced, the principal terms of the definitive completed FTZ contract include:
· 30-year term
· Provides transparent legal and fiscal certainty through the life of the project
· Deemed commenced on 1 August 2024
· Exemption from VAT on:
o Sales of goods and services from Paraguay to the FTZ
o Import of equipment and services (customs tax)
o Services provided to the FTZ
· 0.5% Free Trade Zone tax on revenue from export sales to third countries, no CIT
· 3% effective corporate income tax ("CIT") on profit derived from sales to Paraguay
· 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
o Exemptions from local and municipal taxes and charges
James Spalding, President of ATOME Paraguay, commented:
"The completion of the Free Trade Zone contract is another milestone achievement, coming quickly after the signing of the Heads of Terms with Yara for offtake of our future Villeta production.
"We are deeply appreciative of the ongoing support for our flagship project by the Government and Regulatory authorities of Paraguay and would like to reiterate our congratulations to the Country for achieving investment grade status from Moody's Ratings. We look forward to continuing to deliver this project for the Company and Paraguay."
For more information, please visit https://www.atomeplc.com or contact:
|
ATOME PLC
|
+44 (0) 113 337 2210 |
|
Beaumont Cornish (Nominated Adviser) |
+44 (0) 20 7628 3396 |
|
SP Angel (Broker) |
+44 (0) 20 3490 0470 |
|
FTI Consulting (Strategic Communications) Elizabeth Adams, Ben Brewerton |
+44 (0) 20 3727 1000 |
About ATOME
ATOME 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 Latin America.
The first project is at Villeta in Paraguay. Villeta benefits from a 145MW renewable power purchase agreement and 30 hectares of land in a tax free zone. Front End Engineering Design studies have been completed and Heads of Terms signed with Yara, the leading international fertiliser company for offtake of all of Villeta's production. The Company is now negotiating the project finance with a view to closing that and declaring FID before end 2024. There is a further 300MW of renewable power reserved for ATOME in Paraguay.
In Costa Rica, The National Ammonia Corporation S.A. was formed in 2022 with local partner Cavendish S.A. based in Costa Rica to develop green fertiliser projects for the region. 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.
All power for ATOME is from 100% renewable sources and 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, Schroders, a leading fund manager, and Baker Hughes, a global technology company operating in the energy and industry sectors.
MAR
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.
Other information
Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated Adviser and is authorised and regulated by the FCA. Beaumont Cornish's responsibilities as the Company's Nominated Adviser, including a responsibility to advise and guide the Company on its responsibilities under the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed solely to the London Stock Exchange. Beaumont Cornish is not acting for and will not be responsible to any other persons for providing protections afforded to customers of Beaumont Cornish nor for advising them in relation to the proposed arrangements described in this announcement or any matter referred to in it.
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