VANCOUVER, Feb. 5, 2014 /CNW/ - Run of River Power Inc. ("ROR Power" or the "Company") (TSX-V: ROR) announces that a total cost over-run of $12.8M is anticipated (the "Cost Over-run") on the Skookum Creek Power Project (the "Project"), representing $10.9M in cost over-runs to-date and a further estimated $1.9M in additional cost over-runs. If the Cost Over-run becomes final and further to the Company's Management Discussion and Analysis for the quarter ended September 30, 2013, the Company's acquirable equity stake in the Skookum Creek Power Partnership (the "Partnership") upon exercising its convertible royalty interest will be further reduced from 27% (originally 50%) to nil. The annual royalty in the Project will also be further diluted from 5.42% (originally 10%) of the Project's gross revenues to nil and the Company will not provide services under the management services agreement to the Project. The targeted completion of the Project is set for the end of February 2014.
The Partnership and the Company are investigating ways to defray the Cost Over-run while preserving value to the shareholders. An update will be provided once additional information is available.
About Run of River Power Inc.
ROR Power develops renewable, sustainable energy through its portfolio of clean energy projects. The company helps diversify BC's energy mix by providing a cleaner way to generate power and increasing the security of BC's energy supply. ROR Power operates an Eco Logo© certified hydroelectric power generation station at Brandywine Creek, near Whistler, BC that provides green power for about 4,000 homes.
Certain information regarding the Company set forth in this press release, including management's assessment of the Company's future plans and operations contains forward looking statements that involve substantial known and unknown risks and uncertainties. These forward looking statements are subject to numerous risks and uncertainties, some of which are beyond the Company's and management's control, including but not limited to, the impact of general economic conditions, industry conditions, fluctuation of foreign exchange rates, environmental risks, industry competition, availability of qualified personnel and management, stock market volatility, timely and cost effective access to sufficient capital from internal and external sources. The Company's actual results, performance or achievement could differ materially from those expressed in or implied by, these forward looking statements and accordingly, no assurance can be given that any of the events anticipated to occur or transpire from the forward looking statements will provide any benefits to the Company.
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: Run of River Power Inc.
For further information:
Richard W. Hopp
President and CEO