ASRE - FORM 8-K June 12, 2024
On June 10, 2024, Astra Energy Inc. (the “Company”) have entered into an Agency and Service Agreement (the "Agreement") with Aztec Management Consultants Inc. (the “Agent”), with an office located at 79-13eme Rue, Limete Kinshasa, Democratic Republic of Congo.
The Agent is a consulting and project management firm specializing in securing Power Purchase Agreements (PPAs) and overseeing pre-development, procurement, construction, and commissioning activities for Independent Power Producers (IPPs), particularly those involved in renewable and clean energy projects.
The Agent brought the 100 Megawatt Clean and Renewable Energy Park project in Lesotho project to Astra. The estimated budget for the development is $350 million and they are being engaged to advance PPA negotiations and prepare the project for development. Astra will retain 100% equity interest in the project and pay the Agent:
(a) Deal Fees: 2% of the total project cost, paid in full within 15 days of financial closure.
(b) Project Management Fees: 5% of the total project cost shall be paid as follows:
1% for Mobilization, disbursed within 15 business days of financial closure.
4% prorated over the construction term, with billing monthly starting from the commencement of construction activities.
(c) Design Engineer Fees: 4% of the total project cost, disbursed within 15 business of financial closure. This is a cost that is normally within the scope of the project, but the Agent will have engineers on staff to accommodate this and replace it from the project budget if agreeable to both parties. The main reason for this is that financing the project is the first consideration and if that is in place the parties would be in favor of saving money with the potentially lower fees of 4%.
(d) Upon successful sourcing or securing of the necessary project funding by the Agent, the Principal agrees to initiate negotiations for a separate agreement for an equity position.
This project was announced by the company February 21, 2024: Astra Energy Inc. Executes MOU to Develop a 100-Megawatt Clean and Renewable Energy Park with Lesotho National Development Corporation.
Item 8.01 Other Events
Change of Headquarters to Sarasota, Florida
The Company has made a decision to move its head office immediately from 200-9565 Waples Street, San Diego, CA to 1100 Benjamin Franklin Drive, Unit 802 Sarasota Florida 34236. This will serve Astra as a temporary location for the head office until the Company secures a 60-80,000 square foot office and warehouse for product manufacturing and assembly, ideally near the North Port-Sarasota-Bradenton area.
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