Pele Mountain Resources is moving into energy generation.
In a Feb. 2 release, the company said it is forming Sage Power Corp. (SPC), a subsidiary to advance its energy generation and storage projects in Northern Ontario.
The move comes following an agreement signed between the company and the City of Elliot Lake last September, in which the city agreed that Pele would be the “exclusive developer of energy and energy storage projects on city lands through April 2018.”
“With Pele’s long-standing working relationships and the presence of our flagship Eco Ridge Uranium and Rare Earth project in Elliot Lake, it makes good business sense for us to launch our new venture here, developing energy projects that serve the long-term financial objectives of municipal and commercial electricity consumers in Northern Ontario,” said Al Shefsky, Pele’s president, in the release.
SPC is looking to design and permit combined heat and power (CHP) cogeneration projects, targetting municipal and commercial electricity customers with large heat and power requirements.
In addition, Pele will propose to restructure and rename the company during the upcoming annual general meeting in March.
The company is proposing a consolidation of one for 10 shares, which it said would “improve Pele’s access to capital markets, allowing the company to better position itself to advance its projects, including Eco Ridge.”
The new corporate name would be Griffin Energy & Metals Ltd. Changes are contingent upon shareholder and TSX-V approval.
Pele’s proposed Eco Ridge project is a uranium-rare earths project located in Elliot Lake.