Greengate Power Corporation (“Greengate”), through the sale of its wholly-owned subsidiaries Halkirk I Wind Project LP and Halkirk I Wind Project Ltd., has closed the sale of its remaining 50% interest in the construction-ready 150 MW Halkirk I Wind Project (“Halkirk I”) to its joint venture partner, Capital Power L.P. (“Capital Power”) for C$290,000 per MW. When combined with the amount paid by Capital Power for the purchase of the initial 50% interest in Halkirk I pursuant to the terms of the joint venture agreement, the total consideration received by Greengate for the sale of Halkirk I was C$33 million, paid in cash at closing. Capital Power now owns 100% of Halkirk I.
The sale of Greengate’s remaining 50% interest in Halkirk I follows the joint venture and option agreements previously entered into by Greengate and Capital Power in 2010. Under the terms of those agreements, Capital Power had conditionally agreed to purchase an initial 50% interest in Halkirk I from Greengate, and had an option to purchase a one-third interest in Greengate’s construction-ready 300 MW Blackspring Ridge I Wind Project (“Blackspring Ridge I”). As part of the sale of Halkirk I, the option agreement relating to Blackspring Ridge I has been terminated allowing Greengate to retain 100% ownership of Blackspring Ridge I.
TD Securities Inc. and Jacob Securities Inc. acted as financial advisors to Greengate in connection with the sale of Halkirk I.
The sale of Halkirk I follows the closing of a private placement financing by Greengate in April 2011 for total gross proceeds of C$14.3 million. With these two transactions completed, Greengate has strengthened its balance sheet.
“This sale demonstrates the significant value of Greengate’s world-class, Alberta-based wind energy projects,” said Dan Balaban, President and CEO of Greengate. “We have a strong balance sheet and will now focus our efforts on Blackspring Ridge I, which is construction-ready and is expected to be the largest operating wind energy project in Canada upon completion in 2013.”