Finavera Wind Energy Inc. (TSX: FVR) has completed a Purchase and Sale Agreement with Pattern Renewable Holdings Canada ULC, a subsidiary of Pattern Energy Group LP, for the sale of two wind power farms. Pattern Energy is a large, independent power company operating 1,155MW of wind energy projects in Canada, the United States and Chile.
Under terms of the agreement, Pattern will purchase Finavera’s targeted 47.2 MW Tumbler Ridge and targeted 117 MW Meikle Wind Energy Projects for gross cash consideration of up to $28 million. Pattern will also retain an option to purchase the targeted 77.4 MW Wildmare and targeted 60 MW Bullmoose Wind Energy Projects on similar terms for two years from the closing of this transaction.
Transactions are subject to Shareholder Approval and third party consents.
"This transaction provides a strong return on capital invested in these projects and provides a platform for the next stage of growth for Finavera Wind Energy," said Finavera CEO Jason Bak. "Finavera has established itself as an early stage developer of renewable energy projects up to the point where large scale capital is required for construction."
Upon shareholder approval, up to $9.3 million will be paid to Finavera with the remaining balance paid on a milestone basis as the projects proceed to construction financing. Pattern has also agreed to provide a credit facility to Finavera at a rate of 10 percent per annum, which will be repaid in 2013.