Far East Wind Power Enters Into Binding LOI to Develop Wind Farm in Ningxia, China
04 August 2010 - 11:00PM
Marketwired
Far East Wind Power Corp. (OTCBB: FEWP) ("Far
East" or the "Company") has entered into a binding Letter of Intent
("LOI") with Beijing Tongchuang Hengyuan Technology Development
Company (the "Owner") in order to acquire certain rights to a wind
farm located in Ningxia Hui Autonomous Region, People's Republic of
China ("Ningxia").
Initial plans include the development of a 50 megawatt wind farm
with installed capacity to potentially generate $10.2 million in
revenues on an annualized basis if fully utilized and the LOI
further provides for the right of first refusal on a preliminarily
approved wind farm where potential developable assets at Ningxia
total 1 gigawatt (inclusive of the initial 50 megawatt wind farm)
and if fully developed, installed and utilized could represent
approximately $204.0 million in revenue on an annualized basis.
James Crane, Company CFO, stated, "We are taking advantage of a
niche marketplace in China. Chinese state-owned enterprises are
developing wind farms but there is not enough development to meet
China's stated renewable energy goals and many entrepreneurs in
China are attempting to enter the wind farm marketplace and we are
working with these entrepreneurs to provide them with capital and
refine their business plans so that as partners we can develop
assets that will generate substantial cash flow for each partner
for many years to come."
The LOI includes provisions for Far East's ownership interest in
the wind farm to be structured as a Sino-foreign joint venture (the
JV) of 49% with the local Chinese partner to own 51% of the
project. Additionally, Far East plans to undertake to fund up to
$20.0 million of the development costs and the local Chinese
partner shall execute its business plan and work to obtain all
necessary remaining permitting and authorizations for the wind
farm, and to secure low interest rate bank debt financing of up to
$70.0 million.
Far East will consolidate all assets, liabilities and results of
operations under applicable accounting guidance as a result of
holding the majority of the seats on the JV's board of directors,
and by controlling all cash disbursements, cash dividends, cash
receipts, and approval or disapproval of any equity or debt
financing to be contemplated or executed by the JV. Furthermore,
there is currently an informal agreement, pending Fars East's
approval, regarding a monthly dividend distribution plan whereby
Far East and the Chinese partner would receive monthly cash
dividend distributions.
Additional information will be available shortly on the Far East
website at: www.fareastwind.com.
The Definitive Agreement shall contain customary representation
and warranties, covenants and indemnification provisions. Details
of the company's business, finances, appointments and agreements
can be found as part of the Company's continuous public disclosure
as a reporting issuer under the Securities Exchange Act of 1934
filed with the Securities and Exchange Commission's ("SEC") EDGAR
database.
About Far East Wind Power Corp. (OTCBB:
FEWP) Far East Wind Power Corp. aims to generate clean and
profitable energy in one of the world's fastest growing energy
sectors through access to a portfolio of utility-class wind power
development projects. Far East will inject innovation to drive cost
out of turbine manufacturing, introduce new technologies and
strategic relationships, and aggressively pursue all available low
costs of capital to deliver the most competitive cost per capacity
and highest rates of return in the Asian marketplace. For more
information, visit: www.fareastwind.com.
Notice Regarding Forward-Looking
Statements This news release contains "forward-looking
statements" as that term is defined in Section 27A of the United
States Securities Act of 1933, as amended and Section 21E of the
Securities Exchange Act of 1934, as amended. Statements in this
press release which are not purely historical are forward-looking
statements and include any statements regarding beliefs, plans,
expectations or intentions regarding the future. Such
forward-looking statements include, among other things, regulatory
incentives, the development of new business opportunities, and
projected costs, revenue, profits and results operations. Actual
results could differ from those projected in any forward-looking
statements due to numerous factors. Such factors include, among
others, the inherent uncertainties associated with new projects and
development stage companies. These forward-looking statements are
made as of the date of this news release, and we assume no
obligation to update the forward-looking statements, or to update
the reasons why actual results could differ from those projected in
the forward-looking statements. Although we believe that any
beliefs, plans, expectations and intentions contained in this press
release are reasonable, there can be no assurance that any such
beliefs, plans, expectations or intentions will prove to be
accurate. Investors should consult all of the information set forth
herein and should also refer to the risk factors disclosure
outlined in our annual report on Form 10-K for the most recent
fiscal year, our quarterly reports on Form 10-Q and other periodic
reports filed from time-to-time with the Securities and Exchange
Commission.
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Contact: Far East Wind Power Corp. James Crane
Chief Financial Officer US +1 617 699 6325 China +86 186 2136 3580
Investor Relations: PR Financial Marketing, LLC Jim Blackman
(713) 256-0369 Email Contact Evergreen Investor Relations, Inc.
Phone: 1-866-513-2537 Email: Email Contact Web:
www.fareastwind.com
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