Friday, August 29, 2008

EarthFirst troubles

EarthFirst Canada Ltd, owner of the Nuttby Mountain wind farm project, is in financial difficulties with share prices plummeting from $2.10 in May to a recent low of 22 cents. As of today, this has rallied to 40 cents.

EarthFirst, a subsidiary company of
CrestStreet (the original primary investor of Pubnico Wind Farm), bought the Nuttby project from AWPC in March for $75,000 and $374,00 in shares. At today's share price, those same shares are now worth around $76,700.

Although both EarthFirst, NSPI and AWPC claim that the Nuttby project is going as planned, this project has to be in some jeopardy.

EarthFirst also invested in the 180MW Dokie 1 wind farm in development in BC, which is reported to have already overrun costs by as much as $230 million.

EarthFirst has retained independent financial advisors and legal counsel. Robert Toole has been replaced as president and CEO.

Last year NSPI put out an RFP for 130MW power and accepted projects this year with the potential for about 240MW. Nuttby is rated at 45MW. If Nuttby were to be cancelled, NSPI would still have at least 70MW wiggle room to comply with the required 130MW for end of 2009.

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