BEI is a developer of offshore wind power project and plans to include building facilities for the manufacturing of wind turbine gravity based structures at the Port of Corner Brook and a wind farm service port at Port Harmon in Stephenville.
The proposed 180MW offshore wind farm will be located in the Gulf of St Lawrence which is said to receive the best winds in the world. According to BEI’s estimates, the clean green energy produced here will cost less than ten cents per kilowatt-hour.
Under the terms of the letter of intent, CIVC will issue one common share for every issued and outstanding share of BEI, up to a maximum of sixty two million common shares.
The agreement is expected to be completed on or around 1 November 2014.
Speaking about the agreement, BEI CEO Kirby Mercer said, "This agreement will provide BEI access to the public markets and is another big step forward in our business plan. It is a win-win situation for both companies and for the west coast of the province where our facilities will create up to six hundred manufacturing and service jobs."
CIVC CEO Gerard Edwards said, "CIVC is delighted with the opportunities this deal offers. It will move CIVC into the highly profitable emerging North American green energy sector. It will balance the company’s business portfolio and provides our shareholders the opportunity to participate in this exciting multi-billion dollar North American growth industry."
The company said that the agreement was subject to various approvals which include the TSX-Venture Exchange.
