Finavera Wind Energy says it has finalized an agreement to sell the 184MW Meikle project in British Columbia’s Peace Region for C$28 million ($25.4 million) to a unit of US developer Pattern Energy Group.
Concurrent with closing, Finavera has received consideration of $9.3 million from Pattern. Commencement of construction site activities on the 184MW Meikle Project is expected in early 2015, with the balance of funds due to be paid to Finavera at the close of construction financing, subject to receipt of required permits and approvals.
Finavera CEO Jason Bak, said:
"We are completely aligned with Pattern to progress these projects to operation and will continue to provide Pattern with ongoing support in order to facilitate the key milestone of construction financing."
The sale puts Finavera in what Bak describes as "the enviable postion of being debt free with cash reserves in market with a number of cash-starved opportunities".
Finavera, originally founded in Ireland as Finavera Renewables Inc., secured its B.C. development sites in 2005 and went public on the TSX Venture Exchange in 2007. It reached a milestone in 2010 when it was granted long-term energy-purchase agreements from BC Hydro worth an estimated $2.5 billion. However, it was unable to raise the capital to proceed with construction. The company estimates the total cost of building its four wind projects to be $800 million.
Finavera also has a ten-per-cent interest in the Cloosh Valley wind project in Ireland.