ROR Power and Concord Pacific Join Forces on $92 M Skookum Power Project

    




 VANCOUVER, Feb. 10, 2012 /CNW/ - Run of River Power Inc. together with  its wholly-owned subsidiary, Sea to Sky Power Corporation (collectively  "ROR Power" or "the Company")  announced today that it has  entered into agreements with certain subsidiaries in the Concord  Pacific group of companies (collectively, "Concord") to provide equity  financing for ROR Power's 25 MW Skookum Power Project (the "Project").  Until the Project obtains third-party project financing, the Concord  financing will be provided by a convertible debenture of up to $3.0  million, which will be converted into equity in the Project upon  closing of the third-party project financing transaction and  satisfaction of other closing conditions ("Closing"). 

 Under the terms of the agreements, upon Closing, Concord will acquire a  100% interest in the Project in consideration of providing additional  equity capital required to complete the construction of the Project.  Total project costs are estimated at $92 million. In addition, Concord  will pay to ROR Power a development fee of approximately $5.0 million  at the time of Closing which is anticipated to occur during Q2 2012.  The final development fee payment amount will vary with the final  construction cost and financing terms.  In addition, ROR Power has  retained a royalty interest in the Project for 10% of the Project's  gross revenues. 

 Upon Concord acquiring a 100% interest in the Project, ROR Power will be  responsible for development, engineering and construction of the  Project pursuant to a construction agreement as well as ongoing  operations thereafter. ROR Power will provide management services for  the Project for a fee based on the Project's post-debt service cash  flows. In addition, ROR Power will also have an option to convert its  royalty interest into a 50% equity interest in the Project after the  5th anniversary of the Project's commercial operation date. 

 "We are delighted to partner with a company of this caliber," said Rick  Hopp, President and CEO of Run of River Power. "This long-term  strategic agreement with Concord provides ROR Power with a solid  financial base from which to continue development of the Skookum Power  Project. The agreement will also help to facilitate the required debt  for construction financing of the project," he added. 

 "The Run of River Power Project in BC is a continuation of our Canadian  investments of scale in the clean energy sector. We firmly believe the  demand for clean and sustainable green energy will continue to increase  with growing demand for electric powered vehicles. Together with the  shift to eco-density, green energy and energy efficiency technologies  are probably the most measurable and certain in terms of environmental  benefits," remarked Terry Hui, President and CEO of Concord Pacific. 

 The Company formally signed a 40-year electricity purchase agreement for  the Skookum Power Project with BC Hydro in May 2010. Construction is  scheduled to begin in the second quarter of 2012, with commercial  operation set for January 2014. The Company is in discussions with  lenders regarding long term project financing. When completed, it will  be the Company's second operating hydroelectric power plant in BC. 

 BowMont Capital and Advisory Ltd. served as exclusive financial advisor  to ROR Power in connection with this transaction. 

 About Run of River Power Inc. 

 ROR Power develops renewable, sustainable energy through its portfolio  of clean energy projects. The company helps diversify BC's energy mix  by providing a cleaner way to generate power and increasing the  security of BC's energy supply.  ROR Power operates an Eco Logo©  certified hydroelectric power generation station at Brandywine Creek,  near Whistler, BC that provides green power for about 4,000 homes. The  company is well positioned for profitable growth through power  generation initiatives that include its 25 MW Skookum Power Project,  awarded an Electricity Purchase Agreement by BC Hydro in 2010. ROR  Power's total development potential is approximately 600 MW. 

 About Concord Green Energy 

 Participating in the future of infrastructure needs of Canadians has  always been a cornerstone to Canada's first urban community builder.  Concord Pacific created Concord Green Energy to explore and support a  variety of zero carbon energy producing projects of scale. Green energy  solutions will be a key component to the success of sustainable  communities in the future. Creating sustainable and clean energy at the  source to power the communities of the future is the vision of Concord  Green Energy. Concord Green Energy's first power project, Red Lily I in  Saskatchewan, is complete and is successfully generating renewable  energy. 

 Forward-Looking Statements 

 Statements in this release which describe Run of River Power Inc.'s  intentions, expectations or predictions, or which relate to matters  that are not historical facts are forward-looking statements. These  forward-looking statements involve unknown risks and uncertainties  which may cause the actual results, performances or achievements of Run  of River Power Inc. to be materially different from any future results,  performances or achievements expressed in or implied by such  forward-looking statements. Run of River Power Inc. may update or  revise any forward-looking statements, whether as a result of new  information, future events or changing market and business conditions  and will update such forward-looking statements as required pursuant to  applicable securities laws. 

 Neither TSX Venture Exchange nor its Regulation Services Provider (as  that term is defined in the policies of the TSX Venture Exchange)  accepts responsibility for the adequacy or accuracy of this release. 

Run of River Power Inc.


CONTACT:  Richard W. HoppPresident and CEOTel: [e-mail] 


    

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