Rame will provide energy from its proposed wholly owned wind farm installed, at no charge to Rame, on the Cerro Bayo property and with an installed capacity of up to 1.8 mega watts (MW).
Rame Energy has strengthened its plan to become an independent power producer in Chile after entering an agreement to supply power to the Cerro Bayo mining project.
The group’s subsidiary Seawind Holdings will supply power to the electrical grid system owned by Toronto-listed Mandalay Resources for a minimum of five years.
Commercial operations are expected to start by April 2015.
Chief Executive Officer Tim Adams said: ‘This project is the first of a number of off grid IPP opportunities in wind and solar power we expect to develop, using our previous off grid experience and expertise.’