CALGARY, Alberta, June 20, 2011 /PRNewswire/ --
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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 Greengate's remaining 50% 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 Greengate's 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 Greengate to retain 100% 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, Greengate has strengthened its balance sheet.
"This sale demonstrates the significant value of Greengate's world-class, 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 Greengate, including 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 Greengate believes 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 Greengate can give no 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 Greengate undertakes 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.
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 Greengate, please visit http://www.greengatepower.com.
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SOURCE Greengate Power Corporation