August 27, 2013
OTTAWA, ONTARIO August 27, 2013 - Wind Works Power Corp. (OTC:WWPW - News)(WKN: A0RPM2) is pleased to announce it has closed the sale to Renewable Energy Developers Inc. ("ReD") formerly known as Sprott Power Corp.,of a 75% interest in 4 wind energy projects totaling 50 megawatts ("MW") of contracted capacity with the Ontario Power Authority under the FIT program in Ontario, Canada. ReD is expected to develop and co-own these projects with a financial partner (together, the "Purchasers").
ReD(TSX:RDZ) (TSX:RDZ.DB) recently announced its acquisition by Capstone Infrastructure Corporation (TSX: CSE; CSE.PR.A; CSE.DB.A). The transaction, expected to close in September 2013, is subject to a shareholder vote on both sides as well as regulatory approval.
The 4 projects subject to the sale transaction include Grey Highlands Zero Emission People, Settlers Landing, Snowy Ridge, and ZEP Ganaraska. It is expected that construction will commence in 2014, subject to permitting. The total investment costs is approximately $150 Million once built. The turbines that have been purchased previously for the projects are 2 MW RePowerMM92-100m tower wind turbines, with an option for a full 15-year warranty.
Highlights of the Transaction:
1.The Purchasers will make the following payments and consideration to Wind Works:
a.$56,000 at closing;
b.$1.5 million, subject to milestones and final accounting; and
c.Contingency payments of up to $10 million, subject to certain milestones and performance criteria
2.Other consideration by the Purchasers:
a.$15 Million in outstanding loans of Wind Works for the Ontario projects will be assumed or released by the Purchasers, except for $ 1.6 Million, which are bridge loans for 2 Ontario Projects that Wind Works will continue to develop on its own - Cloudy Ridge and Whispering Woods;
b.The Purchasers are to fund all additional development costs for the 4 projects involved in this transaction; and
c.The Purchaser will organize construction and long term financing for the 4 projects.
3.The Purchasers will build the 4 projects turnkey.
4.Wind Works will retain a 25% interest in all 4 projects, subject to funding its share of the equity in each project.
Conditions precedent to the transaction were met or waived, including receipt of consents required from the Ontario Power Authority and other third parties.
"We have been working with Sprott Power (now ReD) for a number of months, and now appreciate and look forward to a long-term partnership", comments Dr. Ingo Stuckmann, Wind Works' President and CEO. "Our objective is to raise the funds necessary to retain our 25% equity stake and thus be that much closer to our goal to own and operate a minimum of 100 MW of wind farms in the next 3 years in our 3 markets, Germany, Canada, and the United States."
About Wind Works / Zero Emission People
Wind Works now operates 4.6 megawatts in Germany, in which it has a 49% ownership stake. In addition, Wind Works is developing 77 megawatts of near-term permitted projects in Germany; 50 megawatts of FIT contracted projects in Ontario with ReD plus an additional 20 megawatts on its own; and 425 megawatts of projects in the United States.
Our mission is to provide the opportunity for people to participate in the development of renewable wind energy projects. We believe in making sound, environmentally conscious investments that are good for our shareholders and our planet. To eliminate one person`s carbon footprint of 20 tons each year (for Canada), it only takes a modern windmill 2 days by producing approx. 40,000 kilowatt hours of zero emission energy.
For more information, please visit: www.windworkspower.com
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements including, but not limited to, certain delays beyond the company's control, inability to successfully conclude negotiations currently in progress, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.
Certain information contained in this press release may constitute "forward-looking information" which reflects the current expectations of Wind Works. This information reflects Wind Work's current beliefs with respect to future events and is based on information currently available to management. Forward-looking information involves significant known and unknown risks, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking information including, without limitation, the regulatory environment for developing renewable generation in Ontario as well the ability to raise equity financing and maintain interests in the projects. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking information contained in this release. Although forward-looking information contained in this release is based upon what Wind Works believes to be reasonable assumptions, management cannot assure stakeholder that actual results, performance or achievements will be consistent with this forward-looking information. The forward-looking information is made as of the date of this release and Wind Works does not assume any obligation to update or revise it to reflect new events or circumstances, except as required by law.
For additional information, please contact:
Leave a comment...