Wind Energy America, Inc. (OTCBB:WNEA) has signed a Letter of Intent (LOI) to purchase the developer’s stake in four wind farms owned by Northern Alternative Energy Inc., a Minnesota-based corporation.
The wind farms are located on Buffalo Ridge in southwest Minnesota, have a combined nameplate rating of 55 MW, and collectively produce approximately 170,000,000 Kwhrs (kilowatt hours) of electricity annually. Wind power produced from these wind farms is sold to Northern States Power/Xcel Energy (NYSE:XEL) under long-term power purchase agreements. Terms of the LOI call for Wind Energy America to pay a cash amount plus issuance of 4,000,000 shares of its common stock which represents approximately 28% of the total purchase price.
Robert (“Bobby”) Williams, Chairman of Wind Energy America, stated – “We believe these wind farms represent a great core holding for us, since these key Buffalo Ridge sites provide us with a superior opportunity for future development. In conjunction with our other current and planned investments, this acquisition will represent a major step toward our primary strategic plan of building a profitable portfolio of wind power assets.”
Greg Jaunich, Managing Director of Northern Alternative Energy, commented – “Our willingness to accept an equity position in Wind Energy America as a significant portion of the purchase price for the wind farms is a testament to our long term industry vision through this major investment in Wind Energy America.”
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