Western Wind Energy Corp.(TSXV:WND) announced it will purchase the California Windridge generating plant for $1 million.
“Execution of the Windridge agreement provides Western Wind Energy entry into commercial revenue production,” the company said.
Windridge has been generating electricity from 38 wind turbines since 1984. It is part of the Tehachapi wind area, the largest aggregated wind park in the world, home to almost 5,000 wind turbines.
Western Wind says it intends to re-power the Windridge site using new wind turbines with the goal of increasing production output more than tenfold.
The deal gives Western Wind a 100% interest in the wind turbines, electrical equipment, and the underlying fee simple land at the site in Tehachapi, California. It also includes the power contract that exists between Windridge and Southern California Edison Co., subject to approval from that company.
The vendor will receive a five-year convertible debenture of about $345,000, carrying eight per cent annual interest, convertible into shares of Western Wind Energy at $1.65 per share.