/NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES WIRE
CALGARY, Aug. 14 /CNW/ - EarthFirst Canada Inc. (EarthFirst) (TSX:EF,
EF.WT) confirmed today that construction on the Dokie I wind power project is
on track as the company released its second quarter 2008 results.
The company will begin generating revenue in early 2009 as the first
phase of the project is completed. Until then EarthFirst is considered to be
in the development stage and cost management is the key business focus.
EarthFirst began publicly reporting its financial results with its June,
2007 financial statements which were included in its Initial Public Offering
(IPO) documents. Corporate costs for 2008 remain in line year-to-date with
planned expenditures. Net loss for the quarter is $243K and for year to date
is $967K compared to $90K in the prior year three and six months period.
The Dokie I construction activities are progressing on schedule and in
line with revised costs announced in July 2008. The project has now moved
through several risk phases and will be completing the construction of the
first phase of the project through the remainder of Q3 and Q4 2008.
The first five foundations of the 16 foundations planned for 2008 have
been excavated. The eight turbines and their blades planned for installation
in 2008 have arrived at the site on schedule. Construction of the substation
has begun. The remaining tower sections are scheduled to be delivered in
EarthFirst announced in early July 2008 that cost overruns of $35 million
and revised wind energy estimates meant that increased project financing would
be required. As a result of the capital cost increase, lower debt levels
supported by the project due to the Garrad Hassan's North American wide wind
energy estimate revisions and financing related costs, the Company is required
to raise approximately $50 million in additional financing for the Dokie I
Project. The Company is actively working on financing this shortfall through a
combination of subordinated debt and an equity offering. It is anticipated
that these funding activities will all be completed in September. The
previously announced senior debt commitment from WestLB expired on August 5,
2008. EarthFirst continues to actively work with WestLB to complete the
syndication of the senior project debt facility.
EarthFirst is a leading Canadian developer of wind energy projects with a
portfolio of over 2,500 MW of potential renewable generating capacity. This
includes the Company's 144 MW Dokie I project in British Columbia which has
commenced construction and is due to be completed in 2009. An additional
226 MW of fully permitted projects that are expected to be tendered into the
recently announced BC Clean Power Call. Common Shares and Warrants of
EarthFirst Canada Inc. are listed on the TSX under the symbol EF and EF.WT,
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 of August 14, 2008 and, accordingly, is
subject to change after such date. EarthFirst expressly disclaims any
intention or obligation to update or revise forward-looking information,
whether as a result of new information, future events or otherwise, except as
required by applicable law.
For further information:
For further information: Linda Chambers, President and Chief Executive
Officer, EarthFirst Canada Inc., Tel: (403) 513-0778, Toll Free:
1-877-513-0777, E-mail: firstname.lastname@example.org; Derren Newell, VP,
Finance and Chief Financial Officer, EarthFirst Canada Inc., Tel: (403)
513-0766, Toll Free: 1-877-513-0777, E-mail: email@example.com