Press release from CNW Group
Sprott Power Corp. Announces Update on the Sale of Non-Core Hydroelectric Assets to Anyox Hydro Electric Corp.
Wednesday, August 24, 2011
Sprott Power Corp. Announces Update on the Sale of Non-Core Hydroelectric Assets to Anyox Hydro Electric Corp.07:00 EDT Wednesday, August 24, 2011TORONTO, Aug. 24, 2011 /CNW/ - Sprott Power Corp. ("Sprott Power") (TSX: SPZ), a developer, owner and operator of renewable energy projects, today announced that it has entered into an agreement to sell its partnership interests in a number of hydro development projects located in northwestern British Columbia to its partner, Anyox Hydro Electric Corp. As announced on May 11, 2011, the assets include the 30 megawatt Anyox Creek Hydroelectric Project and other nearby hydro development assets. The sale is scheduled to close on or before September 30, 2011. The proceeds from the sale will total up to $4.8 million, with $2.1 million paid through a combination of cash and a short-term irrevocable letter of credit, and the balance receivable upon the successful completion of certain project development milestones."We believe our existing partner was in the best position to successfully develop these assets," said Jeff Jenner, President and CEO of Sprott Power. "The cash provided from this sale will be utilized to expand our project portfolio, as we continue to purchase renewable energy development and operational assets in North America.""We are very excited about owning these hydro projects, particularly with the anticipated demand for power as a result of the significant precious metals mining renaissance in the immediate project area," said Jeff Wolrige, President of Anyox Hydro Electric Corp. "We are thankful to Sprott Power for all of their assistance in completing this transaction."About Sprott Power Corp.Sprott Power is a publicly-traded (TSX:SPZ) Canadian-based company dedicated to the development, owning and operating of renewable energy projects. Through project development efforts, acquisitions, partnerships and joint ventures, Sprott Power provides its shareholders with income and growth from the renewable power generation sector of the energy industry.Forward-Looking StatementsCertain information contained in this press release may constitute "forward-looking information" which reflect the current expectations of Sprott Power and Firelight. This information reflects Sprott Power's and Firelight's current beliefs with respect to future events and are based on information currently available to management. Forward-looking information involves significant known and unknown risks, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking information including, without limitation, the risks listed under the heading "Risk and Uncertainties" in Sprott Power's Management's Discussion and Analysis of Financial Results dated June 13, 2011. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking information contained in this release. Although forward-looking information contained in this release is based upon what Sprott Power and Firelight believe to be reasonable assumptions, management cannot assure investors that actual results, performance or achievements will be consistent with this forward-looking information. The forward-looking information is made as of the date of this release and Sprott Power and Firelight do not assume any obligation to update or revise it to reflect new events or circumstances, except as required by law. For further information: Jeff Jenner, CA, CBV President and Chief Executive Officer Sprott Power Corp. 416-943-6387 firstname.lastname@example.org Catherine Love Investor Relations The Equicom Group 416-815-0700 ext. 266 email@example.com