Cowley Ridge Expansion ....
Calgary, Canada – March 15, 2001 – Canadian Hydro Developers, Inc. (TSE:KHD) is pleased to advise that it has closed its $7 million private placement through a syndicate of agents lead by FirstEnergy Capital Corp., and including Acumen Capital Finance Partners Limited and TD Securities Inc., as announced in February, 2001. A portion of the proceeds of this financing is in escrow and will be released on or before April 30, 2001. These Special Warrants were priced at $3.55 each and will convert to flow-through Common Shares of Canadian Hydro. The Corporation anticipates filing a prospectus to qualify these Special Warrants in early May.
The proceeds will be used primarily to fund the installation of five 1.3 MW wind turbines in the Pincher Creek area of southern Alberta. Canadian Hydro has received confirmation from Natural Resources Canada that the proposed locations for these turbines will receive Canadian Renewable and Conservation Expense ("CRCE") treatment and, as such, will qualify as Canadian Exploration Expense ("CEE") under the Income Tax Act (Canada). As a result, 100% of the subscribers' investment will be deductible in computing 2001 income.
The Corporation has ordered the turbines and expects to start construction this spring and be operational in September of this year. Currently, Canadian Hydro expects to sell power produced from these turbines in the Alberta spot market, although it is considering other longer term marketing arrangements as well.
The initial five wind turbines are being strategically located on land that has recently been optioned by Canadian Hydro in order to test the wind resource over the next year. Once confirmed, the Corporation expects that these lands will have a development potential of approximately 35 MW.
The Corporation is also in the process of expanding its existing Cowley Ridge wind development this year. It expects to install up to 15 1.3 MW wind turbines at Cowley Ridge over the next year.
Canadian Hydro is committed to the concept of low-impact power generation. Through its wind, run-of-river hydro, and gas-fired facilities, Canadian Hydro is demonstrating that commitment to the benefit of the environment and its shareholders. |
