Tonbridge Power Inc. Announces Financial Results

TSX Venture Exchange Symbol: TBZ

TORONTO, May 2 /CNW/ - Tonbridge Power Inc. (TSXV: TBZ) ("the Corporation") today announced financial results for the year ended December 31, 2010. Net income for the year was $0.14 per share. The Company's complete financial statements, management discussion and analysis can be viewed on SEDAR at www.Sedar.com or on the Company's website at www.tonbridgepower.com.

"Design, procurement and construction are now well advanced." said Johan van 't Hof, President and CEO. "We are now actively preparing the company for the MATL projects start and operation, while working on the last challenges of completing construction this year."

Significant Quarterly Highlights

Construction

  • An initial notice to proceed was issued on June 20, 2010 to commence construction on the substations and a notice to proceed to start construction on the transmission line was issued on August 4, 2010 starting with the section from the Marias substation in Montana north to the border. On October 2, the section from the border to Highway 61 was released for work, and on January 10 the remaining part of the Alberta route, was further released for construction for an aggregate total of 120 miles;
  • Montana construction activities from the Marias Substation to the international border are complete with the exception of a five parcel segment, involving one landowner, just east of Cut Bank;
  • All current activities on the Marias south to Great Falls section are focused on finalizing easement acquisition;
  • Alberta construction commenced first south of Highway 61 and proceeded to the border and was suspended for a few weeks, due to the spring thaw as required by the permits.  Right-of-way work is almost completed except for two parcels, and 199 structures out of a total of 312 in this section have been placed and/or erected on the southern section;
  • In Alberta, some of the H frame structures have experienced subsurface compaction failure and a recovery plan is in development by the contractor. The Corporation estimates that the project is approximately four months behind schedule due to construction challenges, and harsh weather delays. This recovery plan may, amongst other things, include bringing in further contracting capacity to provide for additional support;
  • Substations - The construction work at MATL 120S, Marias and Great Falls substations is on schedule for completion mid-summer, substantially before commercial operation date;
  • The PST arrived in Lethbridge November 22, 2010 and was placed on the substation pad shortly thereafter; oil filling will commence in the spring of 2011;

Financial Highlights

  • Interconnection agreements and other settlement matters, permitting NaturEner to achieve construction financial closing for their 309 MW Rim Rock project, are almost complete;
  • As of December 31, 2010, the Corporation has drawn a total of US$108.3M under the Western construction facility, and a received a further US$12.8M after the quarter end to pay accounts payable and accruals; and
  • The Project currently has an expected $5.8M negative variance to its Project budget. Management is currently working to clarify final costs for the land easement process and to settle a project schedule recovery plan with RMC which may result in further variances and which may require the consideration of additional funding to complete the MATL Transmission Line.

Regulatory and Land Update

  • Alberta SRB Process - The SRB has issued 117 Right of Entry orders and rejected none, all in line with MATL's AUC Permit; the last couple of Rights of Entry orders remaining are expected imminently;
  • Montana MDEQ, ("Montana Department of Environmental Quality") - MATL was granted an amendment to its Certificate of Compliance to permit temporary construction impacts in wetland buffer zones, and the right to apply for statutory permits to impact wetlands on a temporary basis under Sec 318 and 404. This amendment was requested to allow for construction effectiveness and limit impacts of significant drive arounds. Four persons appealed this amendment, and if successful the terms of the original MDEQ permit would reapply;
  • Montana District Court Decision with respect to Eminent Domain - MATL has appealed this decision to the Supreme Court in Montana; the Supreme Court has indicated it will provide expedited hearing of the appeal; and
  • Montana House Bill 198 to restore the right of eminent domain to public utilities and other qualifying entities- has successfully passed the House and the Senate and has been sent to the Governor of Montana for signature.

Tonbridge Power Inc. is a Toronto-based developer of electrical transmission assets, whose principal asset is a 100% interest in Montana Alberta Tie Ltd. Shares of the Corporation are traded on the TSX Venture Exchange under the symbol "TBZ". The Corporation's financial statements and other filings can be found on SEDAR.

Should you wish to receive news via email, please email info@tonbridgepower.com and specify "company news".

Cautionary Note Regarding Forward-Looking Statements  

This news release contains "forward-looking statements", within the meaning of applicable Canadian securities legislation, concerning the business, operations and financial performance and condition of the Company. Forward-looking statements include, but are not limited to, statements with respect to future revenues. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "should", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: the conditionality of the revenue contracts, risks related to the financing or construction of the transmission line; risks related to the performance of parties contracting for transmission capacity; delays in obtaining governmental approvals, permits or project financing or in the completion of development or construction activities, requirements for additional capital, government regulation, environmental risks as well as those factors discussed in the section entitled "Risk Factors" in the Company's Annual Information Form for the year ended December 31, 2005, available on www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Tonbridge Power Inc.

For further information:

Tonbridge Power Inc.
Johan van 't Hof, President and Chief Executive Officer
(416) 850-2150  email: jvanthof@tonbridgepower.com

Robert McFarlane, Chief Business Officer
(416) 850-2150  email: rmcfarlane@tonbridgepower.com

Brisco Capital Partners Corp.
Graeme A. Dick
(403) 561-8989  email: graeme@briscocapital.com

Please Visit the Company's Website at: www.tonbridgepower.com

Profil de l'entreprise

Tonbridge Power Inc.

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