TSX Venture Exchange
TORONTO, June 23, 2011 /CNW/ - After careful review, Tonbridge Power
Inc. (TSXV-TBZ) has determined at this time that at least US$25 million
in additional funding is required to complete the construction of its
MATL project. This represents an increase to the US$5.8 million
shortfall estimate previously disclosed in the MD&A and press release
in respect of the 2010 year end. The full extent of the funding
requirement will only be known when certain variables, including
discussions with key stakeholders, have been addressed and resolved.
The company's current credit facilities are insufficient to fund this
shortfall. As a result, management is in discussion with its lenders,
stakeholders and others to address this estimated funding gap. It
expects to make further announcements as details emerge.
The changes to MATL's budgetary status can be attributed to a number of
things. They include a disruptive court decision in respect of eminent
domain in Montana, construction contractor disputes, construction and
regulatory delays, land access and acquisition of rights of way ("ROW")
issues and general materials cost increases. All of these issues have
been intensely reviewed and are constantly being evaluated for project
As previously announced, in connection with the contractor disputes,
construction efforts on the transmission line have been halted. The
company is currently working with its contractor to resume construction
activities in Canada where they were stopped in March because of
permitting restrictions. Work resumption discussions on the
substations and the line in Montana are also ongoing.
Although these are challenging times, the company, is working towards
meeting the company's goal of delivering an operating transmission line
by year end 2011.
Tonbridge Power Inc. is a Toronto-based developer of electrical transmission assets, whose
principal asset is a 100% interest in Montana Alberta Tie Ltd. Shares
of the Corporation are traded on the TSX Venture Exchange under the
symbol "TBZ". The Corporation's financial statements and other filings
can be found on SEDAR.
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Cautionary Note Regarding Forward-Looking Statements
This news release contains "forward-looking statements", within the
meaning of applicable Canadian securities legislation, concerning the
business, operations and financial performance and condition of the
Company. Forward- looking statements include, but are not limited to,
statements with respect to future revenues. Generally, these forward-
looking statements can be identified by the use of forward-looking
terminology such as "plans", "expects" or "does not expect", "is
expected", "budget", "scheduled", "estimates", "forecasts", "intends",
"anticipates" or "does not anticipate", or "believes", or variations of
such words and phrases or state that certain actions, events or results
"may", "could", "should", "would", "might" or "will be taken", "occur"
or "be achieved". Forward-looking statements are subject to known and
unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements of the
Company to be materially different from those expressed or implied by
such forward-looking statements, including but not limited to: the
conditionality of the revenue contracts, risks related to the financing
or construction of the transmission line; risks related to the
performance of parties contracting for transmission capacity; delays in
obtaining governmental approvals, permits or project financing or in
the completion of development or construction activities, requirements
for additional capital, government regulation, environmental risks as
well as those factors discussed in the section entitled "Risk Factors"
in the Company's Annual Information Form for the year ended December
31, 2005, available on www.sedar.com. Although the Company has attempted to identify important factors that
could cause actual results to differ materially from those contained in
forward-looking statements, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can be
no assurance that such statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place
undue reliance on forward-looking statements. The Company does not
undertake to update any forward-looking statements that are
incorporated by reference herein, except in accordance with applicable
Neither the TSX Venture Exchange nor its Regulation Service Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE Tonbridge Power Inc.
For further information:
Robert van Beers, Chief Executive Officer
(416) 850-2150 email: email@example.com
Robert McFarlane, Chief Financial Officer
(416) 850-2150 email: firstname.lastname@example.org
Brisco Capital Partners Corp.
Graeme A. Dick,
(403) 561-8989 email: email@example.com
Please Visit the Company's Website at: www.tonbridgepower.com