Sky Harvest Energy Corp. has sold its interest in assets relating to its Sky Harvest Project, located in southwestern Saskatchewan, to an unnamed buyer.
Sky Harvest simply says the purchaser is ‘a major Canadian wind power development company,’ and the deal includes leasehold interests in approximately 15,000 acres of land, accumulated wind data, environmental assessment studies and a meteorological tower. William Iny, Sky Harvest president and CEO, says the site has the potential to host a 150 MW wind farm.
According to Sky Harvest, the buyer has agreed to pay a purchase price in three installments comprising a fixed payment payable upon execution of a power purchase agreement (PPA), a first success fee based upon the number of megawatts contracted under the PPA and payable upon financial close, and a second success fee also based on contracted megawatts and payable upon the commencement of commercial operations.
The agreement further provides that if the purchaser is unable to execute a PPA respecting the project by Dec. 19, 2019, it will return the assets to Sky Harvest for nominal consideration.
Sky Harvest says it will remain involved in the project, providing development services as it aids the purchaser in liaising with landowners and communities within Saskatchewan, as well as revising lease agreements.
Sky Harvest says it will retain its interests in the Keewatin and Matador sites in southwestern Saskatchewan, which it will continue to develop.