VANCOUVER, June 27, 2011 /PRNewswire/ --
Sea Breeze Power Corp. ("Sea Breeze") is pleased to announce that it has closed an "Asset Purchase" transaction (the "Transaction") with IPR - GDF SUEZ North America ("IPR - GDF SUEZ") for the 99 MW "Phase 1" of the Knob Hill Wind Farm project (the "Project").
Total transaction payments expected to be received by Sea Breeze (as of the date of commercial operations) will amount to approximately CAD$12 million, which include "milestone" payments amounting to CAD $1,865,000, triggered at the Transaction's close. Additional milestone payments will be paid as the Project moves through construction and into commercial production. IPR - GDF SUEZ will provide 100% of the equity funding for the Project.
"We are delighted to announce the completion of the transaction for Phase One, which represents the first of several high-quality wind energy projects that Sea Breeze has been developing," said Paul Manson, CEO of Sea Breeze. "IPR - GDF SUEZ is a world market leader in energy generation."
The Project has been renamed the "Cape Scott Wind Farm" as an element of the Transaction. Construction for the Project is expected to begin during the summer of 2011, following the completion of amendments to the existing environmental approvals for the wind farm. The amendments relate to the Project's transmission line to Port Hardy.
The Project, based on a 20-year Electricity Purchase Agreement ("EPA") executed with British Columbia Hydro and Power Authority ("BC Hydro"), represents the first of two phases for development of the Cape Scott Wind Farm site. IPR - GDF SUEZ holds a "Right of First Offer" to acquire the balance of the permit land available for Phase 2.
In addition to payments for the Transaction, Sea Breeze will receive an ongoing royalty based on a percentage of gross revenue generated by the project through the 20 year BC Hydro EPA, and holds an option to acquire a 10% equity interest in the Project
The Project enjoys strong support from residents of the region, and the Quatsino, Tlatlasikwala and Kwakiutl First Nations, on whose traditional territories the Project is situated.
About Sea Breeze Power Corp.
Sea Breeze Power Corp. is a Vancouver, Canada-based diversified renewable energy company focused on developing renewable energy projects, and implementing state-of-the-art technologies. Upon completion of construction, the Cape Scott Wind Farm will be the first operating power generation facility initiated by Sea Breeze, whose development team is presently investigating an additional 140,000 hectares for wind power development throughout British Columbia.
Through a joint venture partnership with Boundless Energy, LLC, Sea Breeze is also involved in development of large-scale, "smart grid" and environmentally-friendly electricity transmission projects, including the fully permitted 550 MW international "Juan de Fuca Cable", planned to interconnect Victoria, British Columbia with Port Angeles, Washington.
ON BEHALF OF THE BOARD OF DIRECTORS
"PAUL B. MANSON"
per: PAUL B. MANSON, President & CEO
Neither the 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 Sea Breeze Power Corp