Ottawa-based Wind Works Power Corp. has signed an agreement with a corporate investor to provide C$15 million in financing for the development costs of the company's current project pipeline in Ontario. The financing is non-dilutive at the public-company level.
The financing will be used to fund the development costs of Wind Works' existing projects in Ontario, plus new projects that may be acquired during the term of the financing. Existing projects in Ontario include seven projects totaling 80 MW. Those projects – Settlers Landing, Snowy Ridge, Grey Highlands, Cloudy Ridge, Clean Breeze, Ganaraska and Whispering Woods – plus a newly acquired 5 MW project have been awarded feed-in-tariff contracts.
The C$15 million financing is a convertible debenture facility with a maturity date of Jan. 31, 2013. Both interest and principal are due at maturity. Funding is subject to satisfactory due diligence by the investor on a project-by-project basis.
In May, Wind Works gave notice terminating an asset purchase agreement with Premier Renewable Energy Inc. The agreement contemplated the sale of five of the above wind projects in Ontario totaling 50 MW.
According to the agreement, Premier was obligated to pay certain development costs, which they failed to do. The agreement was therefore terminated, and Wind Works has returned to Premier a total of C$950,000 representing the amount of the refundable deposit.