Upon closing, Northland received consideration of approximately $11.5 million for its interest in the project.
The remaining 33.3% of the advanced stage development project is owned by the host municipality of Frampton, Quebec. Once constructed, Frampton will consist of 12 Enercon E-82 wind turbines and is covered by a power sales contract with Hydro-Québec. With a 20-year term, the contract was awarded under the Hydro-Québec Distribution request for proposals for 250 MW of wind power in 2009.
The total project investment is estimated between US$75 to US$80 million.
The quality of the wind resource at the site suggests an average utilization factor of approximately 40%, which should allow the project to generate earnings before interest, taxes, depreciation and amortization of approximately $9 million annually.
The sale enables Northland to realize the project's economic returns at an earlier stage and focus its resources on other larger scale development and construction projects. Northland will use the proceeds for general corporate purposes, and to fund a portion of its investments in Nordsee One and the Grand Bend Wind Farm.
During the last two weeks we have reported about several wind projects globally: