Run of River Power provides Skookum Power Project update
Friday, Feb 07, 2014
VANCOUVER, Feb. 5, 2014 /CNW/ - Run of River Power Inc. ("ROR Power" or the "Company") (TSX-V: ROR) announces that a total cost over-run of $12.8M is anticipated (the "Cost Over-run") on the Skookum Creek Power Project (the "Project"), representing $10.9M in cost over-runs to-date and a further estimated $1.9M in additional cost over-runs. If the Cost Over-run becomes final and further to the Company's Management Discussion and Analysis for the quarter ended September 30, 2013, the Company's acquirable equity stake in the Skookum Creek Power Partnership (the "Partnership") upon exercising its convertible royalty interest will be further reduced from 27% (originally 50%) to nil. The
annual royalty in the Project will also be further diluted from 5.42%
(originally 10%) of the Project's gross revenues to nil and the Company will not provide services under the management services agreement to the Project. The targeted completion of the Project is set for the end of February 2014.
The Partnership and the Company are investigating ways to defray the Cost Over-run while preserving value to the shareholders. An update will be provided once additional information is available.
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 LogoŠ certified hydroelectric power generation station at Brandywine Creek, near Whistler, BC that provides green power for about 4,000 homes.
Source: Run of River Power Inc.