TSX VENTURE: SBX
VANCOUVER, June 4, 2012 /PRNewswire/ - Sea Breeze Power
Corp. is pleased to announce the receipt by Sea Breeze Energy Inc.
("Sea Breeze" - a wholly owned subsidiary of the Company) of a
payment in the amount of CAD $7
million under the terms of an agreement executed with
International Power Canada, Inc. ("IPC") related to the purchase by
IPC of "Phase 1" of the 99 MW Cape Scott Wind Farm ("the Project" -
formerly named the 'Knob Hill Wind Farm').
The $7 million payment was
triggered by commencement of construction of the Project.
In addition to payments related to the original asset purchase
transaction and to subsequent milestone achievements of the
Project, Sea Breeze expects to
receive an ongoing royalty based on a percentage of gross revenue
earned by the Project through a 20-year Electricity Purchase
Agreement with British Columbia Hydro and Power Authority ("BC
Hydro"). Sea Breeze also holds an
option to acquire a 10% equity interest in the Project.
The Cape Scott Wind Farm is situated 35 km west of Port Hardy on northern Vancouver Island,
within the traditional territories of the Quatsino, Tlatlasikwala, and Kwakiutl First
Nations.
Phase 1 of the Project is projected to generate sufficient
renewable power to provide for the annual electricity needs of
approximately 100,000 British Columbians. Commercial operation of
the Cape Scott Wind Farm is scheduled to begin in 2013.
"Sea Breeze is very proud to
have initiated British Columbia's
first coastal wind farm." said Paul B.
Manson, president of Sea
Breeze. "We are extremely pleased that IPC, an affiliate of
GDF SUEZ the world's largest producer of electricity, has decided
to invest in this region, and in this project. The local addition
of 99 megawatts of clean and renewable energy is a substantial step
towards creating a high level of energy security for the residents
of Vancouver Island".
On November 8, 2011, the British
Columbia Environmental Assessment Office completed the requested
amendment to the Environmental Assessment Certificate for the
Project, splitting the original certificate into two (Phase I for
99 MW by Cape Scott Wind, Phase II for future Sea Breeze projects) and accepting the updated
Project design to include the addition of the 40 kilometer 138 KV
Georgie Lake Transmission Line, interconnecting the Project with BC
Hydro's substation in Port
Hardy. On March 15, 2012
Fisheries and Oceans Canada delivered its positive decision on the
screening of the Project under the Canadian Environmental
Assessment Act.
About Sea Breeze Power Corp.
Sea Breeze Power Corp., based in Vancouver, Canada, is a diversified renewable
energy company focused on unlocking British Columbia's enormous 'stranded'
renewable energy potential, through the development of
utility-scale wind farms, 'run-of-river' hydroelectric projects,
and under a joint venture, the development of several
state-of-the-art electricity transmission projects.
Upon completion of construction, the Cape Scott Wind Farm will
be the first operating power generation facility initiated by
Sea Breeze, whose development team
is presently investigating an additional 140,000 hectares of land
throughout British Columbia for
wind power potential.
ON BEHALF OF THE BOARD OF DIRECTORS
"Paul B. Manson"
_________________________________
PAUL B. MANSON, President &
CEO
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(as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release
SOURCE Sea Breeze Power Corp.