Boralex announces acquisition of a hydroelectric power project in British Columbia
MONTREAL, July 25, 2012 /PRNewswire/ – Boralex Inc. (“Boralex” or the
“Corporation”) announces the signing of a binding letter of agreement
to acquire a 22 MW run of the river hydroelectric project (the
“Project”), currently owned by Sequoia Energy Inc. (“Sequoia”). The
Project, located near Gold Bridge, British Columbia, will require
investments of $60 million and will generate approximately 70 GWh
annually. All of the main permits have been secured and construction
work is set to begin shortly.
The hydroelectric station is slated for commercial commissioning in
late 2013. The Project is covered by a 40-year electricity purchase
agreement with BC Hydro and has a 20-year renewal option.
“We are very pleased to announce this new hydroelectric project to
further drive development in British Columbia. A permanent Boralex team
will be set up in the province to help ramp up growth. This acquisition
is also a perfect fit with our strategic plan and creates great value
from the sale proceeds of our U.S. thermal assets,” said Boralex
President and CEO Patrick Lemaire.
Boralex and Sequoia will cooperate throughout construction up to
commercial operation to ensure that all stakeholder and First Nations
expectations are achieved. “We value the relationships we have
developed in British Columbia and are excited to be working with
Boralex who has a strong track record in developing and maintaining
sound relationships,” said Ron Diduch, President and CEO of Sequoia.
The acquisition is subject to the signing of a formal agreement to
finalize the terms of the letter of agreement, and to standard closing
conditions. Boralex expects the transaction to close in the fall of
2012 and that the financing for the project will be in place before the
end of the year.
Boralex is a power producer whose core business is dedicated to the
development and the operation of renewable energy power stations.
Currently, the Corporation operates an asset base with an installed
capacity of more than 500 MW in Canada, the Northeastern United States
and France. Boralex is also committed under power development projects,
both independently and with Canadian and European partners, to add
about 550 MW of power. With more than 200 employees, Boralex is known
for its diversified expertise and in-depth experience in four power
generation types — wind, hydroelectric, thermal and solar. Boralex’s
shares and convertible debentures are listed on the Toronto Stock
Exchange under the ticker symbols BLX and BLX.DB, respectively. More
information is available at www.boralex.com or www.sedar.com.
SOURCE BORALEX INC.