Run of River Power Inc. Acquires Pacific Northwest Biomass Corporation
Mon Mar 17, 8:04 AM
ca.news.finance.yahoo.com
/NOT FOR DISSEMINATION IN THE UNITED STATES/
VANCOUVER, March 17 /CNW/ - Run of River Power Inc. (TSXV: ROR.V) ("ROR") is pleased to announce it has signed a Letter of Intent ("LOI"), to purchase 80% of the issued and outstanding shares of Pacific Northwest Biomass Corp. ("PNBC"), a privately held BC corporation. The acquisition is subject to the completion of a definitive agreement and approval by the TSXV and is expected to close within the next three months. ROR will issue 4,000,000 shares for the acquisition, subject to a voluntary escrow agreement. An additional 1,000,000 shares of ROR could be issued to PNBC shareholders should it achieve an additional Electricity Purchase Agreement ("EPA").
PNBC is proposing a 30 MW biomass power plant to be located near Hazelton, BC. The proposed plant would produce in excess of 240,000 MWh/yr of green, sustainable energy, or electricity for approximately 24,000 homes annually. PNBC recently responded to BC Hydro's Request for Proposal ("RFP") to secure an EPA, potentially generating in excess of $30 million annually to ROR. Commercial operation is targeted for Q3, 2011.
Jako Krushnisky, President of Run of River Power stated, "With the addition of the PNBC opportunity we are a significant participant in the Bioenergy space."
PNBC's President, Rick Connors added, "This project will contribute significantly to the economic development of the region while meeting the sustainability objectives of both the Gitxsan First Nations and the Provincial Government. We are pleased to be working with ROR."
PNBC has entered into a definitive agreement with the Suskwa Chiefs Economic Corp. ("Suskwa") that provides for the Suskwa to acquire up to 40% of PNBC of which 20% would be available from the retained interests of the founding shareholders of PNBC and the additional 20% from ROR at fair market value. In addition, the Hereditary Chiefs of the Suskwa Watershed have given their support.
PNBC has also entered into a 20 year, renewable, Residual Fibre Supply Agreement with the Suskwa and Gitxsan Forest Enterprises Inc. for the required supply of wood waste fuel to the PNBC electricity generating facility.
A shareholder and Director of ROR is also a 25% shareholder and Director of PNBC.
About Run of River Power Inc.
Run of River operates an Eco Logo(C) certified hydroelectric power generation station at Brandywine Creek, near Whistler, BC and sells the power to BC Hydro on a long-term 20 year contract.
ROR is currently developing hydroelectric projects in two clusters located near Vancouver, British Columbia. Further, an additional ten projects under development by ROR, having a potential capacity of 213 MW, could generate over 692,000 MWh/yr of electricity offsetting over 249,000 tons of CO2 annually, when completed.
This potential production by ROR could provide in excess of $60 Million per year in gross revenue to ROR, while significantly contributing to the Province of British Columbia's goal of energy self sufficiency.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this Release.
Contacts
please contact Jako Krushnisky
President and CEO or Vick Dusik
CFO at (604) 946-9232 or David Speck at (416) 368-8464 |
