ROR Power and Concord Pacific Join Forces on $92 M Skookum Power Project
Run of River Power Inc (ROR.V) together with its wholly-owned subsidiary, Sea to Sky Power Corporation, announced today that it has entered into agreements with certain subsidiaries in the Concord Pacific group of companies to provide equity financing for ROR Power's 25 MW Skookum Power Project. Until the Project obtains third-party project financing, the Concord financing will be provided by a convertible debenture of up to $3 million, which will be converted into equity in the Project upon closing of the third-party project financing transaction and satisfaction of other closing conditions.
Upon closing, Concord will acquire a 100% interest in the project in consideration of providing additional equity capital required to complete the construction of the Project. Total project costs are estimated at $92 million. In addition, Concord will pay to ROR Power a development fee of approximately $5 million at closing which is anticipated to occur during Q2 2012. ROR Power has retained a royalty interest in the Project for 10% of the Project's gross revenues.
ROR Power will be responsible for development, engineering and construction of the project, and will provide management services for a fee based on the Project's post-debt service cash flows. In addition, ROR Power will also have an option to convert its royalty interest into a 50% equity interest in the project after the 5th anniversary of the Project's commercial operation date.
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