Toronto Venture Exchange Symbol: "WND"
Issued and Outstanding: 29,378,218
VANCOUVER, March 18 /CNW/ - Western Wind Energy Corporation ("Western
Wind Energy") is pleased to announce that it is in ongoing negotiations with
several parties regarding funding for the build-out of Western Wind's 120 MW
Windstar Project in Tehachapi, California. The parties include affiliates of
wind turbine manufacturers and national energy companies with current supplies
of wind turbines. Also, included in the funding discussions is the expansion
of the Mesa Project, from 30 MW to 50 MW. This new construction totals up to
170 MW of new facilities.
The dynamics of the project economics call for a direct project cost of
between $2.3 - $2.5 million per megawatt with a further project developer
profit payable to Western Wind Energy for up to $1 million per megawatt or up
to $170 million of net present value potential profit payable to Western Wind
Unlike the financing of Canadian wind energy projects, none of these
financing structures in the US involve the sale of corporate equity. The sale
of corporate equity is not required in US project finance structures. All
equity and potential debt facilities can be done at the project level allowing
the corporate parent, Western Wind Energy to remain dilution free during this
Pacific Hydro Pty. Limited has agreed to provide an extension of the
repayment of the Mesa acquisition loan from the current repayment date of
April 28, 2008 to June 24, 2008 in exchange for a $100,000 extension fee. This
will allow Western Wind Energy ample time to support adequate process for
extracting the best value for the Western Wind Energy shareholder.
Jeffrey Ciachurski, CEO of Western Wind Energy states, "Mesa and Windstar
are the most financially lucrative wind opportunities in North America. Each
project is blessed with the best wholesale power rates on the continent and
coupled with the record setting 9.92 meter per second wind regime at Mesa,
which is the highest wind energy resource anywhere on the continent, project
economics generate discounted net present values of approximately $1 million
per megawatt. With $170 million of profit potential to be negotiated, it is of
the utmost importance that we have the adequate time to negotiate the best
deal for all of the Western Wind Energy shareholders. The California market
has allowed us to build some of the best assets in the wind energy
marketplace, own a fleet of over 500 wind turbines in production capacity and
yet, have only 29 million shares issued and outstanding."
With no coal production in the State of California, California derives
all of its fossil fuel electrical production from oil and gas. California has
rightfully decided not to subsidize coal production as the true cost of
electrical generation is reflected in the State's energy prices.
Western Wind Energy is North America's largest publicly traded non-income
trust producer of pure wind energy. Western Wind Energy has the capacity to
produce 34.5 MW of clean renewable electrical energy from over 500 wind
turbine generators located in Tehachapi (Windridge) and San Gorgonio Pass
(Palm Springs), California with annualized energy output capacity of
approximately 70 billion watt hours per year.
Western Wind Energy also has over 145 MW of expansion power sales
agreements with the associated projects in the late stages of development. In
addition, Western Wind Energy has a credible pipeline of over 1,300 MW of site
locations in the State of California. During the past two years, Western Wind
Energy has executed or acquired over $1 billion of power sales agreements
totaling 145 megawatts from the sale of wind energy electrical generation.
Western Wind Energy was the first to execute a "wind" PPA in the State of
Arizona, and in California, is expanding from management's 27-year continuous
operating history in the Tehachapi Pass.
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 facilities 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: