Four of the projects are utility scale solar projects, which have a total capacity of 105 MW, and two are utility scale wind project, which have a total capacity of 168 MW.
If the transaction closes, following the due diligence period, the company will issue shares of stock for the acquisition of the projects and enter into a project development agreement for US$2.5 million in cash with the current owner and developer of the projects to perform certain development services to reach Notice to Proceed (NTP), which means pre-construction tasks are completed.
Blue Earth has approximately two months, unless extended, to perform due diligence on all aspects of the projects, including but not limited to site control, power purchase agreements, permitting, project construction costs and timelines, identification of strategic partners and closing of the transaction. All significant purchase terms have been agreed upon.
Ruben Fontes, President of Blue Earth Solar, Inc. stated:
"We are very excited about the possibility of moving forward on these utility scale projects and expanding into the Mexican market, which has implemented regulatory measures that will facilitate and subsequently increase renewable power generation in the country."
Johnny Thomas, CEO of Blue Earth Inc., commented:
"Since appointing Mr. Ruben Fontes as President of Blue Earth Solar, one of our corporate goals has been to move from small solar projects to utility scale renewable projects. We are pleased with the opportunity that this letter of agreement provides for the Company to own and develop larger solar and wind projects."