Run of River Power Inc. and Concord Green Energy Inc. Enter into
Equity Financing Transaction for Skookum Creek Power Project
VANCOUVER,
Nov. 23, 2012 /CNW/ - Further to the
Company's news release on February 10,
2012, Run of River Power Inc. together with its
wholly owned subsidiary, Sea to Sky Power Corporation
(collectively, "ROR Power" or the "Company") (TSX-V:
ROR), is pleased to announce that the Company has completed a
series of transactions pursuant to which affiliates of Concord
Green Energy Inc., a member of Concord Pacific Group of companies
(collectively, "Concord")
acquired the 25 MW Skookum Power Project (the
"Project"). The Project has been transferred to a
partnership, Skookum Creek Power Partnership (the "Partnership"),
which is now owned and controlled by Concord. Concord will provide to the Partnership the
equity financing required for completion of the Project.
Concord has also committed to
provide a $23.5 million construction
bridge loan to the Partnership to finance construction activities
until the closing of Project financing which is estimated to occur
in the fourth quarter of 2012 or the first quarter of 2013.
Concord will also pay a
development fee to ROR in respect of the Project. ROR Power retains
a royalty interest in the Project for 10% of the Project's gross
revenues.
ROR Power is responsible for development,
engineering and construction of the Project pursuant to a
construction agreement as well as ongoing operations thereafter.
ROR Power will provide management services for the Project for a
fee based on the Project's post-debt service cash flows. In
addition, ROR Power has an option to convert its royalty interest
into a 50% equity interest in the Project after the fifth
anniversary of the Project's commercial operation date.
Construction of the Project commenced in July,
2012 and completion is targeted for January, 2014.
"ROR is very pleased to report that the Company
has closed this important transaction with Concord, which will enhance ROR shareholder
value through the realization of the 25 MW Skookum Creek Power
Project," stated Richard Hopp, ROR
Power's President and CEO. "We have made significant progress on
the Project having acquired all material permits and licences and
having advanced construction."
With this Project, the Red Lily I Wind Farm in
Saskatchewan and other projects in
development, Concord Green Energy will provide a significant
contribution toward carbon reductions in Canada. Concord President Terry Hui, "We see the global environmental
direction of the future and firmly believe the demand for clean and
sustainable green energy will continue to increase. The shift to
electric powered cars will play an important role in changing the
profile of our electricity consumption and need for clean energy
producing projects like the Skookum Creek Power Project."
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. With a total development potential of
approximately 400 MW, the company is well positioned for profitable
growth.
About Concord Green Energy
Participating in the future of infrastructure
needs of Canadians has always been a cornerstone to Canada's first urban community builder.
Concord Pacific created Concord Green Energy to explore and support
a variety of zero carbon energy producing projects of scale. Green
energy solutions will be a key component to the success of
sustainable communities in the future. Creating sustainable and
clean energy at the source to power the communities of the future
is the vision of Concord Green
Energy. Concord Green Energy's first power project, Red Lily I in
Saskatchewan, is complete and is
successfully generating renewable energy.
Forward-Looking Statements
Statements in this release which describe Run of
River Power Inc.'s intentions, expectations or predictions, or
which relate to matters that are not historical facts are
forward-looking statements. These forward-looking statements
involve unknown risks and uncertainties which may cause the actual
results, performances or achievements of Run of River Power Inc. to
be materially different from any future results, performances or
achievements expressed in or implied by such forward-looking
statements. Run of River Power Inc. may update or revise any
forward-looking statements, whether as a result of new information,
future events or changing market and business conditions and will
update such forward-looking statements as required pursuant to
applicable securities law.
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 of accuracy of this release.
SOURCE Run of River Power Inc.