Tuesday, July 26, 2011

Sea Breeze Power Corp. closes $12 million CAD sale of 99 MW Cape Scott Wind Farm in British Columbia to IPR - GDF SUEZ North America

Sea Breeze Power Corp. (“Sea Breeze”) is pleased to announce that it has closed an “Asset Purchase” transaction (the “Transaction”) with IPR - GDF SUEZ North America (“IPR - GDF SUEZ”) for the 99 MW “Phase 1” of the Knob Hill Wind Farm
project (the “Project”).

Total transaction payments expected to be received by Sea Breeze (as of the date of commercial operations) will amount to approximately $12 million CAD, which include “milestone” payments amounting to $1,865,000 CAD, triggered at the Transaction’s close. Additional milestone payments will be paid as the Project moves through construction and into commercial production. IPR - GDF SUEZ will provide 100% of the equity funding for the Project.

“We are delighted to announce the completion of the transaction for Phase One, which represents the first of several high-quality wind energy projects that Sea Breeze has been developing,” said Paul Manson, CEO of Sea Breeze. “IPR - GDF SUEZ is a world market leader in energy generation.”

The Project has been renamed the “Cape Scott Wind Farm” as an element of the Transaction. Construction for the Project is expected to begin during the summer of 2011, following the completion of amendments to the existing environmental approvals for the wind farm. The amendments relate to the Project’s transmission line to Port Hardy.

The Project, based on a 20-year Electricity Purchase Agreement (“EPA”) executed with British Columbia Hydro and Power Authority (“BC Hydro”), represents the first of two phases for development of the Cape Scott Wind Farm site. IPR - GDF SUEZ holds a “Right of First Offer” to acquire the balance of the permit land available for Phase 2.

In addition to payments for the Transaction, Sea Breeze will receive an ongoing royalty based on a percentage of gross revenue generated by the project through the 20 year BC Hydro EPA, and holds an option to acquire a 10% equity interest in the Project

The Project enjoys strong support from residents of the region, and the Quatsino, Tlatlasikwala and Kwakiutl First Nations, on whose traditional territories the Project is situated.

Source: Sea Breeze Corp. Press Release

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