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Wind Works Power Corp. Closes Sale of 75% Interest in 50 MW of Ontario Projects to Renewable Energy Developers Inc., formerly Sprott Power Corp.
Wind Works Power Corp. Closes Sale of 75% Interest in 50 MW of Ontario Projects to Renewable Energy Developers Inc., formerly Sprott Power Corp..
About this update from Wind Wks Pwr Corp
[{"type":"text","content":"\n \n \n \n\n\nAugust 27, 2013\n\n OTTAWA,\nONTARIO August 27, 2013 ? Wind Works\nPower Corp. (OTC:WWPW - News)(WKN: A0RPM2) is pleased to announce\nit has closed the sale to Renewable Energy Developers Inc. (?ReD?) formerly\nknown as Sprott Power Corp.,of a 75% interest in 4 wind energy projects\ntotaling 50 megawatts (?MW?) of contracted capacity with the Ontario Power\nAuthority under the FIT program in Ontario, Canada. ReD is expected to develop\nand co-own these projects with a financial partner (together, the\n?Purchasers?). \n\n\n\nReD(TSX:RDZ) (TSX:RDZ.DB) recently announced its acquisition by Capstone Infrastructure Corporation (TSX: CSE; CSE.PR.A;\nCSE.DB.A). The transaction, expected to close in September 2013, is subject to\na shareholder vote on both sides as well as regulatory approval.\n\n\n\nThe 4 projects subject to the sale transaction include Grey\nHighlands Zero Emission People, Settlers Landing, Snowy Ridge, and ZEP Ganaraska.\nIt is expected that construction will commence in 2014, subject to permitting. The\ntotal investment costs is approximately $150 Million once built. The turbines\nthat have been purchased previously for the projects are 2 MW RePowerMM92-100m\ntower wind turbines, with an option for a full 15-year warranty.\n\n\n\nHighlights of the Transaction:\n\n\n\n1. \nThe Purchasers will make the following payments and\nconsideration to Wind Works:\n\na. \n$56,000 at closing;\n\nb. \n$1.5 million, subject to milestones and final accounting; and\n\nc. \nContingency payments of up to $10 million, subject to certain\nmilestones and performance criteria \n\nOther\n consideration by the Purchasers:\n$15\n Million in outstanding loans of Wind Works for the Ontario projects will\n be assumed or released by the Purchasers, except for $ 1.6 Million, which\n are bridge loans for 2 Ontario Projects that Wind Works will continue to develop\n on its own ? Cloudy Ridge and Whispering Woods;\nThe Purchasers\n are to fund all additional development costs for the 4 projects involved\n in this transaction; and\nThe\n Purchaser will organize construction and long term financing for the 4 projects.\n\n\n\n\n \n\nThe\n Purchasers will build the 4 projects turnkey.\n\n\n\n\n\nWind Works\n will retain a...