Coquitlam, British Columbia-based Western Wind Energy Corp. has executed a comprehensive final settlement arrangement with Pacific Hydro Pty. Ltd. of Australia. The settlement provides for Western Wind to retain 100% ownership in all of its producing projects, including retaining all of the project revenues and cashflows.
In addition, Western Wind Energy will retain 100% of the land holdings as well as retain 100% ownership of two operating wind farms in California. Western Wind will also retain 100% ownership of an additional 155 MW of expansion projects, including the 120 MW Windstar Project in Tehachapi, Calif., and the Mesa Expansion Facility, the company says. Further, Western Wind will retain 100% of the entire 1,300 MW California initiative, which is currently under way.
Western Wind will transfer to Pacific Hydro its 20% interest in and 15 new Mitsubishi wind turbine generators located in storage. Western Wind Energy will be further obligated to repay to Pacific Hydro the Mesa loan of $13.4 million plus interest. However, the company adds, the Mesa loan will be reduced by $3 million as a credit for Western Wind's assignment of its 20% interest in the Mitsubishi wind turbine generators.
Pacific Hydro will retain ownership of its 6 million shares of Western Wind with an agreement to vote according to a standstill agreement that expires on July 7, 2008. The entire settlement agreement is subject to shareholder approval, Western Wind notes.