/NOT FOR DISSEMINATION IN THE UNITED STATES/
VANCOUVER, March 17 /CNW/ - Run of River Power Inc. (TSXV: ROR) ("ROR")
is pleased to announce it has signed a Letter of Intent ("LOI"), to purchase
80% of the issued and outstanding shares of Pacific Northwest Biomass Corp.
("PNBC"), a privately held BC corporation. The acquisition is subject to the
completion of a definitive agreement and approval by the TSXV and is expected
to close within the next three months. ROR will issue 4,000,000 shares for the
acquisition, subject to a voluntary escrow agreement. An additional
1,000,000 shares of ROR could be issued to PNBC shareholders should it achieve
an additional Electricity Purchase Agreement ("EPA").
PNBC is proposing a 30 MW biomass power plant to be located near
Hazelton, BC. The proposed plant would produce in excess of 240,000 MWh/yr of
green, sustainable energy, or electricity for approximately 24,000 homes
annually. PNBC recently responded to BC Hydro's Request for Proposal ("RFP")
to secure an EPA, potentially generating in excess of $30 million annually to
ROR. Commercial operation is targeted for Q3, 2011.
Jako Krushnisky, President of Run of River Power stated, "With the
addition of the PNBC opportunity we are a significant participant in the
PNBC's President, Rick Connors added, "This project will contribute
significantly to the economic development of the region while meeting the
sustainability objectives of both the Gitxsan First Nations and the Provincial
Government. We are pleased to be working with ROR."
PNBC has entered into a definitive agreement with the Suskwa Chiefs
Economic Corp. ("Suskwa") that provides for the Suskwa to acquire up to 40% of
PNBC of which 20% would be available from the retained interests of the
founding shareholders of PNBC and the additional 20% from ROR at fair market
value. In addition, the Hereditary Chiefs of the Suskwa Watershed have given
PNBC has also entered into a 20 year, renewable, Residual Fibre Supply
Agreement with the Suskwa and Gitxsan Forest Enterprises Inc. for the required
supply of wood waste fuel to the PNBC electricity generating facility.
A shareholder and Director of ROR is also a 25% shareholder and Director
About Run of River Power Inc.
Run of River operates an Eco Logo(C) certified hydroelectric power
generation station at Brandywine Creek, near Whistler, BC and sells the power
to BC Hydro on a long-term 20 year contract.
ROR is currently developing hydroelectric projects in two clusters
located near Vancouver, British Columbia. Further, an additional ten projects
under development by ROR, having a potential capacity of 213 MW, could
generate over 692,000 MWh/yr of electricity offsetting over 249,000 tons of
CO2 annually, when completed.
This potential production by ROR could provide in excess of $60 Million
per year in gross revenue to ROR, while significantly contributing to the
Province of British Columbia's goal of energy self sufficiency.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this Release.
For further information:
For further information: please contact Jako Krushnisky, President and
CEO or Vick Dusik, CFO at (604) 946-9232 or David Speck at (416) 368-8464