CALGARY, Sept. 14 /CNW/ - Pristine Power Inc. (TSX: PPX), an independent Canadian developer and operator of electricity and steam generation facilities, today announced that it has entered into an agreement to conditionally acquire an additional 37% interest in 0755748 BC Ltd., the holding company which owns the Kleana Power Project ("Kleana") and several other development assets. The Kleana project is a 600 MW run-of-river hydroelectric project located on the Klinaklini River in western British Columbia. As a result of this agreement, Pristine's ownership interest in the project will increase to 47%. This acquisition includes fractional interests in a number of other early stage hydroelectric development projects, including the 300 MW Machmell River project.
"Our increased investment in the Kleana project underscores our fundamental belief in the quality of the Klinaklini River hydro resource," stated Mr. Jeffry M. Myers, President and Chief Executive Officer of Pristine Power. "The economies of scale, location, minimal environmental footprint, and local participation make this project one of the most compelling run-of-river projects in North America. Once completed, Kleana will more than double Pristine Power's output, increasing net production capacity by 282 MW."
Under the terms of the share purchase agreement, Pristine has made a nominal initial payment to acquire an additional 37% of the shares of 0755748 BC Ltd. Future payments are dependent upon the project achieving specific milestones including the signing of an electricity purchase agreement, the completion of the required environmental assessment, and the issuance of full notice to proceed on the related construction contracts. The timing and likelihood of such payments cannot be determined at this time. At any time until the final payment is made under the agreement, there are provisions in the agreement that permit Pristine to return the shares to the vendor for a nominal price.
The shares acquired by Pristine will be held in trust, and voted by the vendor, until such time as the contracting process for facility output is complete and the associated milestone payment is made to the vendor.
As currently envisioned, the 600 MW Kleana project would operate at a capacity factor of approximately 50% and would include the construction of a 180 km 2x230 kV transmission line with connection into the Campbell River substation on Vancouver Island. Total project costs are expected to be around $3-$4,000 per kW. In November 2008, the project was submitted into the BC Hydro 2008 Clean Power Call with awards expected in the fourth quarter of 2009.
Cautionary Statement Regarding Forward-Looking Information
Certain statements in this news release may constitute "forward-looking information" or "forward-looking statements" which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. When used in this news release, such information uses such words as "estimates", "expects", "plans", "anticipates" and other similar terminology. This information reflects the Company's current expectations regarding future events, including the development, construction and operation of the Kleana Power Project. Forward-looking information involves significant uncertainties, should not be read as a guarantee of future performance or results, and will not necessarily be an accurate indication of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking information. Although the forward-looking information in this news release is based upon what management of the Company believes are reasonable assumptions, the Company cannot assure investors that actual results will be consistent with this forward-looking information. This forward-looking information is provided as of the date of this news release, and, subject to applicable securities laws, the Company assumes no obligation to update or revise such information to reflect new events or circumstances.
Pristine (TSX: PPX) is in the business of developing, owning and operating independent power plants that produce and sell electricity and in some cases, sell process steam to industrial users. Pristine capitalizes on opportunities in the independent power market by actively pursuing the development of dependable, cost-effective and environmentally responsible power generation facilities utilizing technology with proven past performance. Pristine pursues a mix of large gas-fired, bioenergy and hydroelectric projects, and smaller replicable waste heat recovery ERG(R) and bioenergy projects. Pristine currently has two projects in operation, one under construction, and two under contract and in advanced development. Pristine is developing projects in strategic regions of North America. Visit www.pristinepower.ca for more information.
SOURCE PRISTINE POWER INC.
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