Halifax, Nova Scotia-based Shear Wind Inc.'s wholly owned subsidiary, Vindt Resources Inc., is moving forward in the development of its 100 MW Willow Ridge wind project in Alberta.
Vindt is due to meet a security requirement of C$990,000, plus goods and services tax, by Aug. 31 for the Alberta Electric System Operator (AESO)'s connection process stage III costs.
At this time Vindt will also execute the required construction-commitment agreement. During stage III of the connection process, AESO and transmission facility operator AltaLink LP will work to complete the Need Identification Document and Facility applications, which will be submitted to the Alberta Utility Commission (AUC) for permission to connect Vindt's wind project to the Alberta Interconnected Electric System. Vindt will also work to complete and submit its own application to the AUC in order to obtain the approval to construct the wind project.
Genera Avante Holdings Canada Inc. (GAHC), which holds approximately 62% of the common shares of Shear Wind on a fully diluted basis, has agreed – subject to regulatory approval – to provide the necessary bridge financing to Vindt to make the required payment to AESO.
Vindt will issue an unsecured promissory note to GAHC, guaranteed by Shear Wind, in the principal amount of approximately C$1 million for a 10-month term, bearing interest at 12% per annum.
In addition, Shear Wind has obtained all required third-party consents and final approval from the TSX Venture Exchange to transfer all of the assets related to Shear Wind's 62.1 MW Glen Dhu wind power project to Glen Dhu Wind Energy Ltd. Partnership.
SOURCE: Shear Wind Inc.