Run of River Power Inc. and Concord Green Energy Inc. Enter into Equity Financing Transaction for Skookum Creek Power Project
VANCOUVER, Nov. 23, 2012 /CNW/ - Further to the Company's news release on February 10, 2012, Run of River Power Inc. together with its wholly owned subsidiary, Sea to Sky Power Corporation (collectively, "ROR Power" or the "Company") (TSX-V: ROR), is pleased to announce that the Company has completed a series of transactions pursuant to which affiliates of Concord Green Energy Inc., a member of Concord Pacific Group of companies (collectively, "Concord") acquired the 25 MW Skookum Power Project (the "Project"). The Project has been transferred to a partnership, Skookum Creek Power Partnership (the "Partnership"), which is now owned and controlled by Concord. Concord will provide to the Partnership the equity financing required for completion of the Project. Concord has also committed to provide a $23.5 million construction bridge loan to the Partnership to finance construction activities until the closing of Project financing which is estimated to occur in the fourth quarter of 2012 or the first quarter of 2013. Concord will also pay a development fee to ROR in respect of the Project. ROR Power retains a royalty interest in the Project for 10% of the Project's gross revenues.
ROR Power is responsible for development, engineering and construction of the Project pursuant to a construction agreement as well as ongoing operations thereafter. ROR Power will provide management services for the Project for a fee based on the Project's post-debt service cash flows. In addition, ROR Power has an option to convert its royalty interest into a 50% equity interest in the Project after the fifth anniversary of the Project's commercial operation date.
Construction of the Project commenced in July, 2012 and completion is targeted for January, 2014.
"ROR is very pleased to report that the Company has closed this important transaction with Concord, which will enhance ROR shareholder value through the realization of the 25 MW Skookum Creek Power Project," stated Richard Hopp, ROR Power's President and CEO. "We have made significant progress on the Project having acquired all material permits and licences and having advanced construction."
With this Project, the Red Lily I Wind Farm in Saskatchewan and other projects in development, Concord Green Energy will provide a significant contribution toward carbon reductions in Canada. Concord President Terry Hui, "We see the global environmental direction of the future and firmly believe the demand for clean and sustainable green energy will continue to increase. The shift to electric powered cars will play an important role in changing the profile of our electricity consumption and need for clean energy producing projects like the Skookum Creek Power Project."
About Run of River Power Inc.
ROR Power develops renewable, sustainable energy through its portfolio of clean energy projects. The company helps diversify BC's energy mix by providing a cleaner way to generate power and increasing the security of BC's energy supply. ROR Power operates an Eco Logo© certified hydroelectric power generation station at Brandywine Creek, near Whistler, BC that provides green power for about 4,000 homes. With a total development potential of approximately 400 MW, the company is well positioned for profitable growth.
About Concord Green Energy
Participating in the future of infrastructure needs of Canadians has always been a cornerstone to Canada's first urban community builder. Concord Pacific created Concord Green Energy to explore and support a variety of zero carbon energy producing projects of scale. Green energy solutions will be a key component to the success of sustainable communities in the future. Creating sustainable and clean energy at the source to power the communities of the future is the vision of Concord Green Energy. Concord Green Energy's first power project, Red Lily I in Saskatchewan, is complete and is successfully generating renewable energy.
Statements in this release which describe Run of River Power Inc.'s intentions, expectations or predictions, or which relate to matters that are not historical facts are forward-looking statements. These forward-looking statements involve unknown risks and uncertainties which may cause the actual results, performances or achievements of Run of River Power Inc. to be materially different from any future results, performances or achievements expressed in or implied by such forward-looking statements. Run of River Power Inc. may update or revise any forward-looking statements, whether as a result of new information, future events or changing market and business conditions and will update such forward-looking statements as required pursuant to applicable securities law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of accuracy of this release.
SOURCE: Run of River Power Inc.For further information:
Richard W. Hopp
President and CEO