Finavera Wind Energy has agreed to sell its two wind projects in British Columbia, Canada, to Pattern Energy for C$28m ($27.6m).
As per the deal, Pattern Energy will buy the 117MW Meikle and 47MW Tumbler Ridge wind projects located in northeastern Peace Region in Canada.
Pattern Energy will pay $9.3m upon shareholder approval of the transaction, while the remaining amount will be paid on a milestone basis, when projects proceed to construction financing.
The company will also have a two-year option to acquire the 77MW Wildmare and 60MW Bullmoose wind energy projects on similar terms.
British Columbia Hydro & Power Authority has agreed to buy the electricity generated from the four projects for a period of 25 years.
Finavera CEO Jason Bak said the deal represents strong returns on investment made on the projects, as well as financing the company’s next stage of growth.
"The incoming cash will be used to pay down debt, aggressively manage our burn rate, and embark on a fiscally prudent review of opportunities in the marketplace within the next two to six months," Bak added.
Finavera is currently developing the 105MW Cloosh Valley onshore wind project in Ireland and expects to secure financing and start pre-construction activities in the fourth quarter of 2013.
Pattern Energy is currently operating 1,155MW of wind energy projects in Canada, the US, and Chile.
Earlier this year, Pattern Energy and Samsung Renewable Energy secured financing and started construction on the 270MW South Kent Wind project in Chatham-Kent, Ontario, Canada.
Image: Finavera Wind Energy may sell four wind farms to pattern energy. Photo: courtesy of FreeDigitalPhotos.net.
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