Boralex acquires an option for a 25% interest in a wind power project in Ontario
MONTRÉAL, June 8, 2015 /PRNewswire/ – Boralex Inc. (“Boralex” or the “Corporation”) (TSX: BLX) announced the signature of a conditional buy/sell option for a 25% economic interest in the 230 MW Niagara Region Wind Farm project in which Enercon is the majority owner (the “Option”). The total investment planned for this major undertaking is between $900 million and $950 million and Boralex will immediately begin coordination of the project construction phase in partnership with Enercon.
Extending across the Regional Municipality of Niagara, the Township of West Lincoln, the Town of Wainfleet and Haldimand County inOntario, the Niagara Region Wind Farm project will comprise 77 3 MW Enercon turbines and construction will begin in June.
Boralex will have the obligation to exercise the Option if certain financial conditions are met at the time of signature of a project financing agreement. If unexercised at that time, Boralex will be entitled to exercise the Option at its discretion following commercial commissioning of the project. The Corporation expects that $60 million in equity will be needed to exercise the Option. Boralex will be the project operator following exercise of the Option. The initial consideration paid by Boralex in connection with the acquisition of this Option will be approximately $5 million, which will primarily consist of a deposit payable to Enercon.