Spanish-owned Genera Avante Holdings Canada Inc. is putting $21,968,890 into Shear Wind Inc.’s Glen Dhu wind power project that straddles Antigonish and Pictou counties, the companies announced Friday.
Earlier this month, the Bedford renewable energy company and Genera Avante announced they had formed a limited partnership to push ahead with the $170- million, 60-megawatt wind power project. But they didn’t put a price tag on the deal until Friday.
PricewaterhouseCoopers LLP valued the assets of the project at $22,865,580.
Genera Avante will get 49 per cent of the wind farm and Shear Wind will hold 51 per cent.
The consultant also determined the deal "is fair, from a financial point of view, to the shareholders of Shear Wind, excluding Genera Avante," says a release from the two companies involved.
The transaction is slated to close on June 30.
Genera Avante Holdings Canada is a division of Inveravante, a privately held Spanish utility conglomerate that bought a 62 per cent stake in Shear Wind for $27 million last year.
Last month, Shear Wind signed a contract with Enercon Canada Ltd. for wind turbines and a 20-year operational and maintenance agreement for an estimated $100 million.
After delivery, installation of the state-of-the-art turbines will begin this fall.
Electricity from the wind farm will be sold to Nova Scotia Power under an agreement signed in 2008 with the utility for 20 megawatts of energy.
Glen Dhu was supposed to be operating by now, but Shear Wind was not able to secure financing until late last year. The company had to forfeit a $500,000 performance deposit to Nova Scotia Power after it failed to deliver electricity to the utility by the end of last year.
The publicly traded company was formed in 2004.
Shear Wind shares traded Friday at 24 cents on the TSX Venture Exchange.
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