Independent power produce Rame Energy has agreed terms for a conditional $4.7 million funding facility for its Cerro Bayo off-grid wind project in Chile.

The deal, from Anden Re Capital SpA, fully funds the estimated cost of the project, the construction of which is due to be completed in the fourth quarter of 2015.

Anden Re will acquire a 75% equity interest in the project at commercial operations date with Rame retaining a 25% equity interest under the terms of the arrangement.

Rame is acting as engineering, procurement and construction (EPC) contractor and a power purchasing agreement is already in place with the Cerro Bayo mining project in Chile, owned by Mandalay Resources Ltd.