EarthFirst Announces Commencement of Construction at Dokie I Wind Project and Reports First Quarter Results
/NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES WIRE
SERVICES/
CALGARY, May 13 /CNW/ - EarthFirst Canada Inc. ("EarthFirst") (TSX: EF,
EF.WT) is pleased to announce it has commenced construction at its 144 MW wind
project located in the Peace River area of North East British Columbia and to
report its First Quarter results. With the commencement of on-site
construction activities at the Dokie I Project, the first quarter of 2008 is a
very significant milestone for EarthFirst in the pursuit of its goal of having
600 MW of windpower production into the next 5 years as it began on-site
construction at the Dokie I project.
The Dokie I Project construction activities during the first quarter
focused on site preparation work including geo-technical work, clearing of the
roads and the turbine sites as well as road development work to the site. This
work is progressing according to the project plan. Work also continued on the
detailed design and the tendering of various balance of plant contracts and
ordering of long lead time equipment. The tendering process is expected to be
complete by mid June 2008, which is slightly behind the project time line as a
result of having to resolve some minor technical issues during the
finalization of design. This slight delay in the tendering process is not
expected to have any impact on the overall scheduled project completion.
In March, 2008, EarthFirst acquired the Nuttby Mountain Project from
Atlantic Wind Power Corporation. The Nuttby Project which is situated
approximately 20 km north of Truro, Nova Scotia has good access to
transmission facilities, roads, rail and ports, a completed interconnection
feasibility study and has secured a 45 MW 23 year Power Purchase Agreement
with NSPI. Negotiations for a turbine purchase and warranty and service
agreements with well known global wind turbine manufacturers for 2009 delivery
have commenced. The process to obtain an environmental assessment and other
required permits is underway. It is currently anticipated that the
environmental assessment and related permits will be received in the fourth
quarter of 2008.
Permitting work continued at the 30 MW Grand Valley projects during the
first quarter of 2008 as various submissions and accommodations were made to
the Environmental Assessment office in an attempt to secure the required
environmental assessments. At this time it appears unlikely that the necessary
permits will be received in time to commence construction in 2009.
EarthFirst, which is considered to be in the development stage, incurred
a net loss for the first quarter of $0.72 million compared to nil for the
prior year period primarily due to the internalization of the Management team
and other costs to run the business as part of the restructuring transaction.
Until the second quarter of of 2007, all expenditures made in the business
were recorded as deferred development costs or pre-operating costs as they
related to the development of windpower projects or were costs of placing the
Corporation into service.
EarthFirst remains focused on building the Dokie I project built on time
and on budget, while continuing to develop the other projects in its pipeline,
this includes working on the permitting processes at Grand Valley and Nuttby.
We continue to await the commencement of the BC Hydro Clean Power Call into
which we will tender our fully permitted Wartenbe and Dokie Expansion
Projects.
EarthFirst's First Quarter Report has been posted to EarthFirst Canada's
website at www.earthfirstcanada.com and on Sedar at www.sedar.com.
Certain statements included in this news release constitute
"forward-looking information" within the meaning of applicable securities
legislation including the timing of the construction of the Dokie I project,
anticipated completion of the financing of this project. Such forward-looking
information involves known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of EarthFirst
to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking information.
Specifically, some of the material risks include not being able to
acquire required permits, delays in construction timing or turbine delivery
and not being able to complete the financing for Dokie I Project. In providing
such forward-looking information we have made various assumptions regarding,
among other things, turbine availability, timing of the receipt of permits,
interest rates, foreign currency exchange, projected construction costs,
timeframes and the costs of and availability of skilled labour.
The forward-looking information contained in this news release represents
the expectations of EarthFirst as at May 13, 2008, and, accordingly, is
subject to change after such date. However, EarthFirst expressly disclaims any
intention or obligation to update or revise any forward-looking information,
whether as a result of new information, future events or otherwise, except as
required by applicable law.
For further information: Derren Newell, VP, Finance and Chief Financial
Officer, EarthFirst Canada Inc., Tel: (403) 513-0766, Toll Free:
1-877-513-0777, E-Mail: dnewell@earthfirstcanada.com