Toronto Stock Exchange (Venture) Symbol: "WND"
Issued and Outstanding: 25,969,859
COQUITLAM, BC, Oct. 1 /CNW/ - Western Wind Energy Corporation is pleased
to announce that it has executed a comprehensive final settlement arrangement
with Pacific Hydro Pty. Limited.
Western Wind Energy is the largest producing pure wind energy, publicly
traded company (non-income trust) in North America. Western Wind Energy
currently produces 34.5 MW of energy from over 500 wind turbine generators
located in Southern California. Western Wind also has over 155 MW of expansion
power sales agreements with the associated projects in the late stage of
development. In addition, Western Wind Energy has a credible pipeline of over
1,300 MW of site locations in the State of California.
The Final Settlement Arrangement
The Final Settlement Agreement provides for Western Wind Energy to retain
100% ownership in all of the producing projects, including retaining all of
the project revenues and cash flows. Western Wind Energy will retain 100% of
the land holdings as well as to further retain 100% ownership of the two (2)
operating wind farms in California. Western Wind will also retain 100%
ownership of the additional 155 MW of expansion projects including the 120 MW
Windstar Project in Tehachapi and the Mesa Expansion Facility. Further,
Western Wind Energy will retain 100% of the entire 1,300 MW California
Initiative, which is currently underway.
In achieving this settlement Western Wind will satisfy certain conditions
to Pacific Hydro including the following: Western Wind will transfer to
Pacific Hydro its 20% interest in and to the 15 new Mitsubishi wind turbine
generators located in storage. Western Wind Energy will be further obligated
to repay to Pacific Hydro Pty. Limited, the Mesa loan of US $13.4 million plus
However, the Mesa loan will be reduced by US $3 million as a credit for
Western Wind's assignment of its 20% interest in and to the Mitsubishi wind
turbine generators. There will be a further reduction on the interest rate of
the Mesa Loan for the amount owing past December 31, 2006. It is anticipated
that the Mesa Loan balance will be approximately US $11.7 million at the date
of payout. Western Wind Energy has 210 days from September 28, 2007 to repay
the Mesa Loan, failing which Pacific Hydro Pty. Limited will then own the Mesa
Western Wind Energy has received a term sheet and engagement letter from
a major European commercial bank for a debt facility to repay the Mesa Loan to
Pacific Hydro under very favorable lending conditions and under a very low
interest rate. In essence our loan from Pacific Hydro reduces from US $13.4
Million plus interest to a reduction of $3 Million plus further interest rate
Pacific Hydro will retain ownership of its 6 million shares of Western
Wind Energy with an agreement to vote according to the Standstill Agreement
which expires on July 7, 2008.
Western Wind Energy is pleased with the settlement arrangement as it
allows Western Wind Energy to retain all of its assets including all the newly
acquired production assets funded by Pacific Hydro Pty. Limited. Western Wind
Energy is also pleased to have Pacific Hydro Pty. Limited remain as a
cornerstone shareholder of our Company.
The Settlement Agreement is subject to shareholder approval to be held on
October 25, 2007 whereby non-Pacific Hydro shareholders may only vote. We
anticipate broad and overwhelming shareholder approval.
Jeff Ciachurski, CEO of Western Wind Energy states, "We are pleased to
have delivered to ALL shareholders a settlement that benefits the growth of
the production output and further enables Western Wind to complete and execute
our premium development assets in energy starved California. As an example of
our premium top-of-the industry assets, our Mesa 30 MW producing facility has
the highest wind speed output of any wind production facility in North America
with annual average mean wind speeds in excess of 9.92 meters per second or 22
miles per hour. This coupled with our storied wind assets in Tehachapi will
now unlock the full market value the shareholders are entitled to receive.
Current market valuations of recent sales and market values in the wind energy
industry place each MW of producing wind power at $4 Million of market cap per
MW of installed facility. Western Wind currently has 34.5 MW of currently
installed and producing facilities."
Western Wind Energy currently produces clean renewable electrical energy
from over 500 wind turbine generators located in Tehachapi (Windridge) and San
Gorgonio Pass (Palm Springs), California. Western Wind Energy's annualized
energy output is approximately 75 billion watt hours per year. During the past
two years, Western Wind Energy has executed or acquired over $1 billion of
power sales agreements totaling 169.4 megawatts from the sale of wind energy
electrical generation, to two separate utilities. Western Wind Energy was the
first to execute a "wind" PPA in the State of Arizona, and in California, is
expanding from management's 25-year continuous operating history in the
Western Wind Energy is in the business of acquiring exceptional land
sites, capital and technology for the production of electricity from wind
energy. Western Wind Energy conducts its operations through its wholly owned
subsidiaries in Arizona and California. Management of Western Wind Energy
includes individuals involved in the operations and ownership of utility scale
wind energy operations in California since 1981.
ON BEHALF OF THE BOARD OF DIRECTORS
Jeffrey J. Ciachurski
Chief Executive Officer
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news release.
Certain statements included herein are "forward-looking statements" as
defined by the Private Securities Litigation Reform Act of 1995. Management
cautions that forward-looking statements are not guarantees and that actual
results could differ materially from those expressed or implied in the
forward-looking statement. Important factors that could cause the actual
results of operations or financial condition of the Company to differ include,
but are not necessarily limited to, the risks and uncertainties discussed in
documents filed by the Company with the Securities and Exchange Commission.
For further information:
For further information: WESTERN WIND ENERGY CORP., 632 Foster Avenue,
Coquitlam, BC, V3J 2L7, Telephone: (604) 839-4192, Facsimile: (604) 939-1292,