VANCOUVER, July 26, 2012 /PRNewswire/ - Finavera Wind Energy Inc. ('Finavera Wind Energy' or the 'Company') (TSX-V: FVR) is pleased to announce it has signed a binding Purchase and
Sale Agreement to sell the 77 megawatt ("MW") Wildmare Wind Energy
Project for approximately $22,000,000 to Innergex Renewable Energy Inc.
(TSX: INE) ("Innergex"). The Wildmare Wind Energy Project, located near
the community of Chetwynd in north east British Columbia, was awarded a
25 year power purchase agreement with B.C. Hydro and is at an advanced
stage of permitting. The purchase price of this asset will be
approximately $22.0 million, subject to adjustments based on the
realization of certain events and milestones. The transaction is
subject to satisfaction or waiver of customary conditions precedent for
transactions of this nature.
Finavera Wind Energy CEO Jason Bak said, "We are extremely pleased to
sign this agreement with Innergex for the sale of the Wildmare Wind
Energy Project. This transaction illustrates the significant asset
value Finavera has created for shareholders and provides a strong
return on our investment in the development of wind energy for British
Columbia. This transaction creates a stable platform for long term
growth and allows Finavera to recycle capital and fund the ongoing
development of its remaining portfolio of projects."
This transaction provides clear evidence of the value of the assets in
the Company's portfolio. The value of this single transaction is a
multiple of Finavera's current market capitalization which is in
addition to a net 234.5 MW of further wind projects under development.
This sale was undertaken as part of a larger strategic plan to ensure
the Company has a strong balance sheet, a strong project portfolio, and
a strong development team to optimize on the value of its wind project
Finavera's business model involves capturing the significant value
uplift during the development phase and then determining the optimum
path of asset finance, construction and operation versus asset sale
once the project reaches an advanced stage of permitting. This
transaction validates that business model and allows Finavera to
replicate the success of the Wildmare project across our entire British
Columbia portfolio which includes the 47 MW Tumbler Ridge Wind Energy
Project, the 117 MW Meikle Wind Energy Project, and the 60 MW Bullmoose
Wind Energy Project. Combined with a further €7,140,000 (approximately
$8,800,000) due at the end of 2013 from Finavera's partnership with SSE
plc on the 105 MW Cloosh Valley Wind Project in Ireland, we will be in
a strong position to develop the rest of our portfolio.
The transaction close is expected to occur within 60 days, although both
parties will work diligently to accelerate that timeline. During the
closing period, Finavera and Innergex will work together to advance the
project in the Environmental Assessment process and to continue
consultation with Finavera's First Nation partners. The acquisition is
subject to the completion of customary closing conditions including the
receipt of all regulatory and TSX Venture Exchange approvals. The
acquisition has received approval of the Board of Directors of Finavera
and the Board of Directors of Innergex.
Jason Bak, CEO
About Finavera Wind Energy Inc. (www.finavera.com)
Finavera Wind Energy is a wind energy development company focused on
developing, constructing, and operating wind farms in North America and
Ireland. Our mission is to create and operate a viable renewable energy
business while protecting and enhancing the physical and social
environment. In British Columbia, Canada, projects totaling 301 MW have
been awarded 25 year Electricity Purchase Agreements. In Ireland, the
Company has signed a co-development agreement with Scottish and
Southern Renewables for the 105MW Cloosh Valley Wind Project. Data
collection and environmental studies have been continuing at a number
of prospective sites in Canada and the United States.
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.