Synex Renewable Energy Corporation Announces Closing of Sale of Wind Project in British Columbia

Rhea-AI Summary

Synex Renewable Energy (TSX: SXI) announced the closing of its previously disclosed sale of the Bouleau Mountain Wind Project in British Columbia, Canada. The transaction, executed through its subsidiary Sea Breeze Power Corp., has a purchase price of approximately $4.7 million, contingent on securing an electricity purchase agreement (EPA), plus a 1% royalty on the project's gross revenue.

Upon closing, the buyer made an initial cash payment of $400,000. The remaining balance will be paid as the project reaches specific milestones, including obtaining an EPA with BC Hydro and commencing commercial operations. The project has been submitted to the BC Hydro Call for Power 2024 RFP, with expectations of achieving commercial operations within the next four to seven years.

Positive

• Sale of Bouleau Mountain Wind Project for approximately $4.7 million
• Additional 1% royalty on the project's gross revenue
• Initial cash payment of $400,000 received
• Project submitted to BC Hydro Call for Power 2024 RFP
• Potential for further value creation upon achievement of milestones

Negative

• Full payment contingent on securing an electricity purchase agreement and achieving commercial operations
• 4-7 year timeframe for expected commercial operations, indicating a long wait for full payment realization

Vancouver, British Columbia--(Newsfile Corp. - October 16, 2024) - Synex Renewable Energy Corporation (TSX: SXI) ("Synex" or the "Company") today announced that its wholly owned subsidiary, Sea Breeze Power Corp. ("Sea Breeze"), closed its previously announced disposition of Sea Breeze's wind energy project known as Bouleau Mountain Wind Project (the "Wind Project"), located in British Columbia, Canada (the "Transaction").

As previously disclosed, the purchase price of the Wind Project pursuant to the Transaction is approximately $4.7 million, subject to entering into an EPA (as defined herein) with respect to the Wind Project, plus a royalty payment equal to one percent of the gross revenue of the Wind Project. Upon closing of the Transaction, the Buyer paid Sea Breeze a cash payment of $400,000, and the remaining balance of the purchase price will be paid upon the Wind Project achieving certain milestones, including the entering into of an electricity purchase agreement (the "EPA") with British Columbia Hydro and Power Authority (or other similar regulated utility) and the commencement of commercial operations of the Wind Project.

"With the sale of the Bouleau Mountain Wind Project, we have demonstrated our ability to monetize our significant wind portfolio at competitive prices. We are also thrilled that the project has been submitted to the BC Hydro Call for Power 2024 RFP, and we are confident that the project can achieve commercial operations in the next four to seven years. This will result in the achievement of all of the applicable milestones and lead to further value creation for the Company," stated Daniel J. Russell, Chief Executive Officer of Synex.

About Synex

Synex is a Vancouver, British Columbia based company engaged in the development, acquisition, ownership, and operation of renewable energy projects in Canada. It has ownership interests in 12 MW of operating hydro projects in British Columbia and owns a Vancouver Island grid connection and utility carrying on business as Kyuquot Power Ltd. The Company also has 9.4 MW of construction ready run-of-river projects, applications, and land tenures on another 24 potential hydroelectric sites totaling over 150 MW of capacity, and approximately 16 wind development sites that could provide up to 4,700 MW of clean power in British Columbia. For further information, visit www.synex.com.

For media inquiries, please contact:

Daniel J. Russell
President & CEO, Synex Renewable Energy Corporation.
4248 Broughton Avenue, Niagara Falls, ON L2E 3K6
Phone (905) 329-5000
E-mail: daniel.russell@synex.com

Forward-looking Information - This press release contains forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking information included in this press release reflects the current expectations of Synex management regarding future growth, results of operations, performance and business prospects and opportunities. Wherever possible, words such as "anticipates", "believes", "budgets", "could", "estimates", "expects", "forecasts", "intends", "may", "might", "plans", "projects", "schedule", "should", "target", "will", "would" and the negative of these terms and other similar terminology or expressions have been used to identify the forward-looking information, which includes, without limitation, statements the entering into of an EPA with respect to the Wind Project, business strategy, the potential for the sale of additional wind licenses, and plans and objectives of or involving Synex or Sea Breeze.

Forward-looking information involves significant risk, uncertainties and assumptions, including the capacity of the Wind Project being 144MW. Certain material factors or assumptions have been applied in drawing the conclusions contained in the forward-looking information. These factors or assumptions are subject to inherent risks and uncertainties surrounding future expectations generally, including those identified from time to time in the forward-looking information. Forward-looking statements contained herein are provided for the purposes of presenting information about management's current expectations and plans relating to the future and such information may not be appropriate for other purposes. Synex cautions readers that a number of factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking information. These factors should be considered carefully and undue reliance should not be placed on the forward-looking information. For additional information with respect to certain of these risks or factors, reference should be made to the continuous disclosure materials filed from time to time by Synex with Canadian securities regulatory authorities. Synex assumes no obligation or intention to update or revise forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/226836

FAQ

What is the purchase price for the Bouleau Mountain Wind Project sold by Synex (SYITF)?

The purchase price for the Bouleau Mountain Wind Project is approximately $4.7 million, subject to entering into an electricity purchase agreement, plus a 1% royalty on the project's gross revenue.

How much initial cash payment did Synex (SYITF) receive for the wind project sale?

Synex received an initial cash payment of $400,000 upon closing the sale of the Bouleau Mountain Wind Project.

When is the Bouleau Mountain Wind Project expected to achieve commercial operations?

The Bouleau Mountain Wind Project is expected to achieve commercial operations within the next four to seven years, according to Synex's announcement.

What RFP has the Bouleau Mountain Wind Project been submitted to?

The Bouleau Mountain Wind Project has been submitted to the BC Hydro Call for Power 2024 RFP.