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Polaris Infrastructure Signs Letter of Intent to Acquire 10 MW Run-of-River Hydro Project in Panama
Polaris Infrastructure Signs Letter of Intent to Acquire 10 MW Run-of-River Hydro Project ...
About this update from Polaris Renewable Energy Inc.
[{"type":"text","content":"\n\n\n\nPolaris Infrastructure Signs Letter of Intent to Acquire 10 MW Run-of-River Hydro Project in Panama\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, June 16, 2020\n\n\n\n\n TORONTO, June 16, 2020 /CNW/ - Polaris Infrastructure Inc. (TSX: PIF) (\"Polaris\" or the \"Company\"), a Toronto-based company engaged in the operation, acquisition and development of renewable energy projects in Latin America, announced today that it signed a Memorandum of Understanding  (\"MOU\") to acquire 100% of the equity of a Panama-based 10 MW run-of-river hydro project called Chuspa (the \"Project\") from Navitas Holdings Inc. (\"Navitas\").  \nThe key terms of the MOU state that:\nPolaris has the option to acquire 100% of the equity for nominal up front consideration; Such option expires on December 31, 2020. To the extent Polaris elects to exercise its option, Polaris will invest the required equity capital to complete the Project, estimated to be approximately USD $15 to $20 million. Current shareholders of Navitas will receive certain payments in the event that, after having achieved Project completion, the cash flows generated by the Project exceed certain minimum defined thresholds. Such thresholds are based on Polaris generating a minimum return of 15% of the equity committed to complete the Project. The Project has the following attributes: \nConstruction ready project with all licenses and permits in hand that are required to both complete construction and operate the run-of-river hydro project; Minor construction works have already been completed such as road access, foundation preparation for turbine house; Significant down payments have already been made on two turbines by the sellers; Contracts for approximately 40-50% of expected production are in hand at US$85 per Mwhr; Anticipated timeline to COD completion of 12-15 months once mobilization commences; and Polaris Infrastructure plans to fund the construction with cash on hand.\"We are very pleased to have signed this MOU\" stated Marc Murnaghan, Chief Executive Officer of Polaris I...