Greengate Power Sells its Remaining Interest in the 150 MW Halkirk I Wind Project
By Greengate Power Corporation, PRNESunday, June 19, 2011
CALGARY, Alberta, June 20, 2011 -
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Greengate Power
Corporation (”Greengate”), through the sale of its wholly-owned
subsidiaries Halkirk I Wind Project LP and Halkirk I Wind Project
Ltd., has closed the sale of its remaining 50% interest in the
construction-ready 150 MW Halkirk I Wind Project (”Halkirk I”) to
its joint venture partner, Capital Power L.P. (”Capital Power”) for
C$290,000 per MW. When combined with the amount paid by Capital
Power for the purchase of the initial 50% interest in Halkirk I
pursuant to the terms of the joint venture agreement, the total
consideration received by Greengate for the sale of Halkirk I was
C$33 million, paid in cash at closing. Capital Power now owns 100%
of Halkirk I.
The sale of
interest in Halkirk I follows the joint venture and option
agreements previously entered into by Greengate and Capital Power
in 2010. Under the terms of those agreements, Capital Power had
conditionally agreed to purchase an initial 50% interest in Halkirk
I from Greengate, and
had an option to purchase a one-third interest in
construction-ready 300 MW
Blackspring Ridge I Wind Project (”Blackspring Ridge I”). As
part of the sale of Halkirk I, the option agreement relating to
Blackspring Ridge I has been terminated allowing
ownership of
Blackspring Ridge I.
TD Securities Inc. and Jacob Securities Inc. acted as financial
advisors to Greengate
in connection with the sale of Halkirk I.
The sale of Halkirk I follows the closing of a private placement
financing by Greengate
in April 2011 for total gross proceeds of C$14.3 million. With
these two transactions completed,
strengthened its balance sheet.
“This sale demonstrates the significant value of
Alberta-based wind energy projects,” said Dan Balaban, President
and CEO of Greengate.
“We have a strong balance sheet and will now focus our efforts on
Blackspring Ridge I, which is construction-ready and is
expected to be the largest operating wind energy project in Canada
upon completion in 2013.”
FORWARD LOOKING STATEMENTS:
This news release contains forward-looking statements and
forward-looking information (collectively “forward looking
information”) within the meaning of applicable securities laws. In
particular, forward looking information in this news release
includes, but is not limited to: statements with respect to the
Blackspring Ridge I Wind Project (”Blackspring Ridge I”)
and Greengate’s
other wind energy projects, including the expected completion date
and relative size of
Blackspring Ridge I. The forward-looking information is
based on certain key expectations and assumptions made by
expectations and assumptions concerning the development of its wind
energy projects and other wind projects in Canada; the state of the
economy and the cleantech business; business prospects and
opportunities; the current regulatory and political environment;
and existing financial commitments. Although
that the expectations and assumptions on which the forward-looking
statements are based are reasonable, undue reliance should not be
placed on the forward-looking statements because
assurance that they will prove to be correct. Since forward-looking
statements address future events and conditions, by their very
nature they involve inherent risks and uncertainties. Actual
results could differ materially from those currently anticipated
due to a number of factors and risks. The forward-looking
statements contained in this news release are made as of the date
hereof and
no obligation to update publicly or revise any forward-looking
statements or information, whether as a result of new information,
future events or otherwise, unless required by applicable
securities laws.
About Greengate
Power Corporation
Greengate is a
privately held renewable energy project developer based in Calgary,
Alberta, Canada. It is focused on the development of high quality
wind energy projects across Alberta with access to existing
transmission and supported by long-term, fixed-price agreements.
Greengate is currently developing 1,450 MW of wind energy projects
on approximately 165,000 acres of private land. Greengate’s vision
is to be Canada’s largest pure-play renewable energy producer. For
more information on
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Tags: Alberta, Calgary, canada, Greengate Power Corporation, June 20
