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
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