VANCOUVER, May 1, 2012 /CNW/ - Finavera Wind Energy Inc. ('Finavera Wind Energy' or the 'Company') (TSX-V: FVR) announces its 2011 year-end financial results and provides
a corporate update for shareholders.
Finavera Wind Energy CEO Jason Bak said, "Finavera continues to build
substantial value in its core assets and the Company believes the
current value of these projects is substantially greater than the
Company's current market capitalization. These assets include four 25
year power purchase agreements with BC Hydro that will generate
approximately $1 billion dollars in revenue over their lifetime. The
great success of receiving an Environmental Assessment Certificate for
the Tumbler Ridge Wind Energy Project validates the efforts of our
development team and provides the basis for future permitting work."
"We are currently assessing the financing options for each of our
British Columbia projects. These options include joint ventures, 100%
equity opportunities with an on-going carried interest, the sale of a
project, or arranging third party project finance. Extensive discussion
and negotiations have occurred with a number of prospective financial
partners involved in the banking and energy sectors and we are highly
confident of completing the financing option that is in the best
interest of our shareholders, in a timely manner. The Company will
disclose its preferred finance options for each Project once binding
agreements have been executed," Bak concluded.
Recent Milestones
-
The Company's 47 megawatt ("MW") Tumbler Ridge Wind Energy Project
received an Environmental Assessment Certificate. B.C. Minister of the
Environment Terry Lake and Minister of Energy and Mines Rich Coleman
made the decision to grant the EAC after considering the review led by
B.C.'s Environmental Assessment Office ("EAO").
-
The 105 megawatt Cloosh Valley Wind Project in Ireland was granted full
Planning Permission from An Bord Pleanála, the Irish regulatory agency
responsible for development and approving strategic infrastructure.
Planning Permission is the final regulatory hurdle for the Cloosh
Valley Wind Project and provides a clear route to financial close,
construction and operation of Ireland's largest onshore wind project.
At financial close, the Company will receive a further payment of
€7,140,000.
-
The Company signed a Memorandum of Understanding ("MOU") with the McLeod
Lake Indian Band for the development of the Company's 47 MW Tumbler
Ridge and 77 MW Wildmare Wind Energy Projects being developed in the
Peace Region of British Columbia. The MOU marks the beginning of a
partnership between McLeod Lake Indian Band and Finavera that will see
benefits flow to both parties through the construction and operation of
the wind projects that will produce 124 megawatts of clean, renewable
electricity.
Summary of Financial Results
In 2011, the Company incurred a net loss of $3,240,975. This compares
to net income in the prior year of $1,638,177, a difference of
$4,879,152. The difference was mainly the result of changes in three
primary items. First, during 2010, the Company recorded income of
$3,110,673 from discontinued operations. The income was due to a gain
recorded as a result of writing off debts in a subsidiary when it was
disposed of. Second, also in 2010, the Company recorded a gain on the
disposal of Cloosh Valley Wind Project of $1,408,283 as a result of
receiving the first €1,260,000 ($1,696,590) instalment, out of a total
purchase price of €8,400,000 (approximately $11,000,000), with the
final payment to be received on financial close of the project. And
third, in 2011 the Company entered into a settlement agreement with a
creditor of a former subsidiary in the amount of $960,983 to settle a
longstanding dispute. Consequently, all other net expenses totalled
$2,279,992 in 2011 compared to $2,880,779 in 2010, a decline of 21%. In
2011, the Company incurred BC wind project development costs of
$6,477,802, compared to $5,170,321 in 2010. To date, the Company has
incurred total BC Project costs of $17.2 million.
This financial summary should be read in conjunction with the Company's
December 31, 2011 financial statements and Management's Discussion and
Analysis, both of which are available on www.sedar.com.
Jason Bak, CEO
About Finavera Wind Energy Inc. (www.finavera.com)
Finavera Wind Energy is a wind energy development company focused on
developing, constructing, and operating wind farms in North America and
Ireland. Our mission is to create and operate a viable renewable energy
business while protecting and enhancing the physical and social
environment. In British Columbia, Canada, projects totaling 301 MW have
been awarded 25 year Electricity Purchase Agreements. In Ireland, the
Company has signed a co-development agreement with Scottish and
Southern Renewables for the 105MW Cloosh Valley Wind Project. Data
collection and environmental studies have been continuing at a number
of prospective sites in Canada and the United States.
Statements in this news release, other than purely historical
information, including statements relating to the Company's future
plans and objectives or expected results, constitute Forward-looking
statements. The words "would", "will", "expected" and "estimated" or
other similar words and phrases are intended to identify
forward-looking information. Forward-looking information is subject to
known and unknown risks, uncertainties and other factors that may cause
the Company's actual results, level of activity, performance or
achievements to be materially different than those expressed or implied
by such forward-looking information. Such factors include, but are not
limited to: uncertainties related to the ability to raise sufficient
capital, changes in economic conditions or financial markets,
litigation, legislative or other judicial, regulatory and political
competitive developments and technological or operational difficulties.
Consequently, actual results may vary materially from those described
in the forward-looking statements.
"Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release."
