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.
Forward-Looking Statements
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.