Minerco Resources, a provider of renewable energy solutions in Latin America, has signed an agreement to acquire a 4MW hydroelectric project from Energetica de Occidente (Enercosa) in Honduras.
The project, known as Iscan, is located in the municipality of Guata in the Department of Olancho.
Enercosa will receive 1 million restricted shares of MINE in two installments, while the company is responsible for ongoing expenses through final design and continued operations of the project.
The project is estimated to have the potential capacity to gross $2.4m per year once fully operational and has an estimated internal rate of return of 21%.
The Iscan project is currently in the early feasibility stage of development and in the process of completing all studies and obtaining all necessary approvals allowing Minerco to participate in the feasibility, development, design and construction stages of the project.
The project is expected to start construction in 2012.