VANCOUVER, Oct. 15, 2015 /PRNewswire/ - Alterra Power Corp. (TSX: AXY) announces that the drilling campaign for the Mariposa geothermal project in Chile has been rescheduled for late 2016. Energy Development Corporation (EDC), the managing partner for the joint venture, decided to postpone the drilling in response to lower commodity prices which have negatively impacted near-term project economics. The drilling was previously scheduled to begin in October of this year. In the meantime, Alterra and its partner, Energy Development Corporation, will continue developing the project through engineering work for the power plant and transmission interconnection, proceeding with an environmental impact assessment, and other development activities. Under the joint venture agreement, EDC is currently funding all project activities up to a total of US$58.3 million.
John Carson, Alterra's Chief Executive Officer, said "In spite of this delay, we remain very positive about the Mariposa project and long-term prospects in Chile. We are continuing our work on a solar project in Chile and other opportunities in Latin America and Iceland, in addition to our core development focus on North American renewable projects."
About Alterra Power Corp.
Alterra Power Corp. is a leading global renewable energy company, operating five power plants totaling 553 MW of generation capacity, including British Columbia's largest run-of-river hydro facility and largest wind farm, and two geothermal facilities in Iceland. Alterra owns a 247 MW share of this capacity, generating over 1,250 GWh of clean power annually. Alterra has an extensive portfolio of exploration and development projects and a skilled international team of developers, explorers, builders and operators to support its growth plans. Alterra also has two new projects under construction:
- Shannon – 204 MW wind project located in Clay County Texas; expected to be in operation by Q4 2015 or Q1 2016; 50% owned by Alterra
- Jimmie Creek – 62 MW run-of-river hydro project adjacent to the existing Toba Montrose facility; expected to be in operation by Q3 2016; 51% owned by Alterra
Upon completion of these two projects Alterra will operate seven power plants totaling 819 MW of capacity and will own a 381 MW share of this capacity, generating over 1,700 GWh of clean power annually. Alterra has an extensive portfolio of exploration and development projects and a skilled international team of developers, explorers, builders and operators to support its growth plans.
The company trades on the Toronto Stock Exchange under the symbol AXY and OTC in the United States as MGMXF.
Cautionary Note Regarding Forward-Looking Information
Certain statements and information included in this news release are "forward-looking information" within the meaning of Canadian securities laws that involve risks and uncertainties. Forward-looking information relates to future events or future performance and reflects management's expectations and beliefs regarding future events as of the date hereof. Examples of forward-looking information in this news release include the work that is planned to take place on the Mariposa project in the upcoming year or future years, Alterra's outlook on the Mariposa project and Chile, our estimates of annual generation and the date the Shannon and Jimmie Creek projects will achieve commercial operations. Forward-looking information is based on factors or assumptions that were applied in drawing a conclusion or making a forecast or projection. Since forward-looking information relates to future events and conditions, by its very nature it requires making assumptions and involves inherent risks and uncertainties. Alterra cautions that although it is believed that the assumptions are reasonable in the circumstances, these risks and uncertainties give rise to the possibility that actual results may differ materially from the expectations set out in the forward-looking information. Material risk factors and assumptions include the completion of the technical and permitting work at Mariposa, power market conditions in Chile, the joint venture arrangements between Alterra and EDC which could affect the timeline and advancement of the project, the ability to complete construction on the Shannon and Jimmie Creek projects and the ability of the Shannon project to satisfy the conditions precedent to the tax equity funding commitment as well as those set out in the management's discussion and analysis section of Alterra's most recent annual and quarterly reports and in Alterra's Annual Information Form for the year ended December 31, 2014. Although Alterra has attempted to identify important factors that could cause actual actions, events or results to differ materially from forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate and undue reliance should not be placed on forward-looking information. Except as required by law, Alterra undertakes no obligation to update any forward-looking information to reflect new information, subsequent or otherwise.
SOURCE Alterra Power Corp.