MONTREAL, Oct. 27 /CNW/ - AAER Inc. (TSX-V: AAE), Canada's only original equipment manufacturer of wind turbines of 1 megawatt ("MW") and more, announced today that it has signed a letter of intent with Leader Resources Services Inc. ("Leader"), for the delivery of a 1.65 MW wind turbine in Tiverton, Ontario. This $3.3 million partial turnkey contract is subject to AAER completing its financing for the project on or before July 31, 2010. The Tiverton turbine will be a test wind turbine for Leader, which is currently involved in developing a number of wind projects in several Ontario municipalities. This initiative is headed by Charles Edey, a wind energy pioneer in Ontario.
"This contract, when finalized, will mark our entry into the Ontario wind energy market, another milestone in our growth," said Dave Gagnon, President and CEO, AAER. "Ontario's Green Energy and Green Economy Act provides strong support for renewable energy in the province and offers AAER further opportunities to supply wind turbines to large developers and local communities. Our success with Leader will establish AAER as a reliable supplier of wind turbines projects in Ontario."
The Tiverton turbine will be submitted for a Power Purchase Feed-In Tariff contract under the Green Energy and Green Economy Act (Ontario) as an early launch project.
Leader is a local, experienced company, with a team that successfully developed several energy projects, the largest being a 200-MW wind farm just north of Kincardine, Ontario, along the shore of Lake Huron, which is now owned and operated by Enbridge. Presently, Leader is involved in developing several other small and large scale wind projects in the Municipalities of Central Huron, Kincardine, Arran-Elderslie, and Norfolk County.
"This project is a direct result of the Green Energy Act, which provides fresh opportunities for more people to individually participate in the green electricity business," Edey said. "Ontario is currently the leading wind energy jurisdiction in North America, and is bringing both investment and jobs. Having the chance to work with AAER and to be part of the activity as they bring to Ontario the first-ever commercial class Canadian-built turbine is very exciting. I hope this is the first of many more," he adds.
About AAER Inc.
AAER is a wind turbine manufacturer located in Bromont, Quebec that manufactures and maintains high capacity 1 Megawatt or more wind turbines principally for the North American market. Its strategy is to progressively build its product's components to provide a high level of reliability and competitive pricing to its customers. AAER uses a portfolio of proven European technologies to ensure the performance of its turbines in various wind conditions and terrains. Its stock is listed on the TSX Venture Exchange (TSX-V: AAE). Additional information is available on the Company's website at www.aaer.ca.
This news release contains certain forward-looking statements or forward looking-information. These forward looking statements are subject to a variety of risks and uncertainties beyond the Corporation's ability to control or predict which could cause actual events or results to differ materially from those anticipated in such forward looking statements. Such risks and uncertainties are disclosed under the heading "Risk Factors" in the Corporation's Annual Information Form for the year ended December 31, 2008 and dated March 26, 2009. Further, forward-looking information is in addition based on various assumptions, including, without limitation, assumptions about: (i) general business and economic conditions; (ii) selection of the Corporation's client bids in different requests for proposals; (iii) the availability of financing on reasonable terms; (iv) the availability of key components for the assembly of wind turbines, (v) the costs of raw materials and parts; (vi) the Corporation's ability to attract and retain skilled staff; (vii) market competition; (viii) the technology offered by the Corporation's competitors; (ix) the Corporation's ability to meet contractual obligations and delivery dates; and * the Corporation's ongoing relations with employees and with clients. Should one or more of these risks and uncertainties materialize, or should the underlying assumption prove incorrect or different, actual results may vary materially from those described in the forward-looking statements. All forward looking statements speak only as of the date of this news release. Accordingly, readers should not place undue reliance on forward-looking statements.
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SOURCE AAER INC.
For further information: For further information: AAER Inc.: Dave Gagnon, President, Telephone: (450) 534-5155, www.aaer.ca; Eric Phaneuf, Chief Financial Officer, Telephone: (450) 534-5155, email@example.com