Vancouver, BC – February 26, 2009 – NaiKun Wind Energy Group Inc. (“NaiKun Wind” or the “Company”) continued in the most recent financial quarter to make progress on its proposed offshore wind energy project in Hecate Strait, off B.C.’s northwest coast.
During the quarter which ended December 31, 2008, NaiKun Wind achieved the following key milestones:
- Formal submission of the project proposal on November 24, 2008 into BC Hydro’s Clean Power Call to supply up to 396 megawatts of clean, renewable electricity;
- Continued discussions with the Council of the Haida Nation, leading to the signing of a limited partnership agreement to operate and maintain the project after construction;
- Successful community consultation activities including four open houses and meetings with local governments and community, business and environmental stakeholders;
- Signing of a letter of intent with Siemens Wind Power related to the purchase of up to 110 wind turbine generators;
- Confirmed excellent wind and seabed conditions at the project site through continued on-site technical and engineering activities;
- Released the results of a public opinion survey indicating 73 per cent of British Columbians support the NaiKun Wind project; and,
- Announced that NaiKun Wind was upgraded to a Tier 1 listing on the TSX Venture Exchange.
“NaiKun Wind is confident that its project offers BC Hydro flexibility to meet future electricity needs with a clean, renewable and scalable energy resource,” said Paul Taylor, NaiKun Wind’s president and CEO. “We are ready to successfully build British Columbia’s next power legacy, to help the province achieve its goal of electricity self-sufficiency by 2016.”
The next major step for the NaiKun Wind project is the filing of an application for an environmental assessment certificate through the harmonized federal-provincial process. NaiKun will also be submitting the application to the Haida Nation for their environmental approval. Environmental certification is expected in late 2009.
NaiKun Wind also expects to be advised mid-year on BC Hydro’s selection of successful proponents in the Clean Power Call, with the signing of an electricity purchase agreement shortly thereafter.
During the coming months NaiKun Wind Generating Inc. (“GenCo”), a NaiKun Wind subsidiary that will construct and own the Phase 1 project, will work to secure a third equity partner to acquire a portion of NaiKun Wind’s ownership position, consistent with the Company’s original plan and its primary role as a project developer. Current owners of GenCo are NaiKun Wind and ENMAX Green Power Inc., a subsidiary of ENMAX Energy Corporation.
As at December 31, 2008, NaiKun Wind had $22.68 million in cash and cash equivalents, compared to $34.05 million at the end of December 2007. Spending increased in the quarter due largely to the preparation of the proposal for BC Hydro’s Clean Power Call, and for field work, which has since been completed, supporting the environmental assessment application for the project.
During the quarter, NaiKun Wind incurred a net loss of $3.70 million ($0.09 net loss per share), compared to a net loss of $2.56 million ($0.07 net loss per share) for the same quarter in the previous year.
NaiKun Wind Energy Group Inc. (TSX-V: NKW) is a B.C.-based renewable energy company traded on the TSX Venture Exchange. The proposed NaiKun Wind project will generate enough energy to provide electricity to 130,000 B.C. homes, help the province reach its goal of becoming electricity self-sufficient by 2016 and play a significant role in combatting climate change. NaiKun Wind is committed to working in partnership with First Nations and collaboratively with stakeholder groups and local communities in the development of its project. Additional information is available at www.naikun.ca.
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The TSX Exchange does not accept responsibility for the adequacy or accuracy of this release.
Caution Regarding Forward-Looking Statements - This news release contains certain forward-looking statements, including statements regarding the business and anticipated financial performance of the Company. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward looking statements, oral or written, made by itself or on its behalf.
For more information, contact:
Media Enquiries:
Doug McClelland
Director, Communications
NaiKun Wind Energy Group Inc.
Phone: 604-631-4487 or dmcclelland@naikun.ca
Investor Relations:
Peter Murray
Manager, Investor Relations
NaiKun Wind Energy Group Inc.
Phone: 604-631-4494 or pmurray@naikun.ca
Feb 26, 2009 return
