VANCOUVER, July 21, 2014 /CNW/ - Finavera Wind Energy Inc. ("Finavera" or the "Company") (TSX-V: FVR) is pleased to announce that it has completed a series of agreements for the sale of its 10% equity interest in the 105 megawatt ("MW") Cloosh Valley Wind Project in County Galway, Ireland (the "Project") to SSE Renewables (Ireland) Limited ("SSER") for €2.1 million. The Cloosh Valley Wind Project, Ireland's largest onshore wind project, was the subject of a Co-Development Agreement announced August 25th, 2010 between SSER, Coillte (the state-owned commercial forestry and renewables company), and Finavera Wind Energy. The Co-Development Agreement resulted in staged payments of €8.4 million payable to the Company, in consideration for a 90% interest in the Project, of which €1.26 million has been received. The remaining €7.14 million is expected by Q4, 2014. The €2.1 million received from the sale of Finavera's remaining 10% equity interest in the Cloosh Valley Project will be used primarily to retire the Company's secured debt.
Finavera Wind Energy CEO Jason Bak said, "Finavera originated and completed the early stage risk development of the Cloosh Valley Wind Project beginning in 2005. With the addition of SSER and Coillte as co-development partners in 2010, the Project achieved a number of successful milestones which have resulted in full planning permission and all major permits being received. We are confident the Cloosh Valley Wind Project is on track to arrange project finance later this year. This milestone will trigger the final €7.14 million payment to Finavera."
"This transaction is another step towards a stronger balance sheet and the ability to move Finavera in a new direction. Combined with the sale of 184MW of wind projects in BC, Canada to Pattern Energy, this transaction puts Finavera in an increasingly stronger cash position in order to capitalize on new opportunities in the renewable energy marketplace. We appreciate our shareholders patience as we work to improve our balance sheet, significantly reduce our working capital requirements and perform due diligence on exciting new opportunities in the renewable energy sector," concluded CEO Jason Bak.
Jason Bak, CEO
About Finavera Wind Energy Inc. (www.finavera.com)
Finavera Wind Energy is a company focused on developing renewable energy opportunities. Our mission is to create and operate a diversified portfolio of renewable energy projects while protecting and enhancing the physical and social environment. Finavera has developed over 360MW of wind projects and subsequently sold them to utilities or large independent power producers. Finavera is continuing to opportunistically review prospects for growth and the enhancement of shareholder value.
Statements in this news release, other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, constitute Forward-looking statements. The words "would", "will", "expected" and "estimated" or other similar words and phrases are intended to identify forward-looking information. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company's actual results, level of activity, performance or achievements to be materially different than those expressed or implied by such forward-looking information. Such factors include, but are not limited to: uncertainties related to the ability to raise sufficient capital, changes in economic conditions or financial markets, litigation, legislative or other judicial, regulatory and political competitive developments and technological or operational difficulties. Consequently, actual results may vary materially from those described in the forward-looking statements.
"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 or accuracy of this release."
SOURCE: Finavera Wind Energy Inc.
For further information: Finavera Wind Energy, Jason Bak, CEO, +1 (604) 288-9051, [email protected]