Innergex Renewable Energy Inc.(TSX: INE) announced an agreement withLedcor Power Group Ltd. to acquire 66 2/3% of a joint venture,holding rights to develop 18 run-of-river hydroelectric power projects in Lower Mainland in British Columbia.
Theseprojects would represent a potential installed capacity of more than 200 megawatts (MW) and produce over 1,000 gigawatt-hours of clean energy for the province, filling theneeds of approximately 98,000 BC homes.
Innergex will invest $8 million for this acquisition in additionto issuing 200,000 warrants to Ledcor. Subject to TSX approval, the warrantswill be exercisable within 24 months from closing of the transaction, at astrike price of $12.50 per warrant.
Ledcor will remain the owner of 33 1/3% ofthe joint venture.
Most of these projects are in their early stage of development but someare ready to be submitted to BC Hydro’s Clean Power Call and to BC Hydro’sStanding Offer Program, the company said.
Innergex intends to finance the acquisition withcash on hand.
About Innergex Renewable Energy Inc.
Innergex Renewable Energy Inc. is a developer, owner and operator ofhydroelectric facilities and wind energy projects in North America. The Corporation owns a portfolio of projects whichconsists of one operating facility (8 MW), interests in nine developmentprojects with power purchase agreements under construction or to beconstructed between 2008 and 2012 (gross expected capacity of 565 MW), andprospective projects (gross expected capacity of more than 1,600 MW). InnergexRenewable Energy Inc. also owns 16.1% of the Innergex Power Income Fund, apublicly traded income fund listed on the Toronto Stock Exchange (IEF.UN), andacts as its manager under long-term management agreements.
About Ledcor Power Inc.
Ledcor Power Inc. is an independent power producer (IPP) currentlyfocused on developing environmentally friendly "green" energy projects inBritish Columbia. Ledcor Power is a wholly owned subsidiary within the LedcorGroup of Companies. Founded in 1947, Ledcor is an employee-owned group of companies, specializing in building, civil, industrialand telecommunications projects and services.
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