Second Quarter Update and Financial Results
posted on May 25, 2009 06:14AM
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|May 25, 2009|
|NaiKun Wind: Second Quarter Update and Financial Results|
|VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 25, 2009) - The quarter ended March 31, 2009 highlighted continued progress for the offshore wind energy project that NaiKun Wind Energy Group Inc. (TSX VENTURE:NKW) is developing in Hecate Strait, off B.C.'s northwest coast.
NaiKun Wind's major activities and achievements during the quarter include the following:
- Submission to the BC Environmental Assessment Office on March 16 of an application for an environmental assessment certificate for the project. With the application's formal acceptance, the 180-day application review phase was initiated on May 20. A 45-day period for public input, which ends on July 12, is part of the review phase. The Haida Nation is also undertaking a concurrent
environmental review of the project.
- Signing of a limited partnership agreement between NaiKun Wind wholly-owned subsidiary, NaiKun Wind Operating Inc., and the Council of the Haida Nation to create a 50/50 partnership that will maintain and operate the wind project after construction.
- Signing of a Memorandum of Understanding with the Prince Rupert Port Authority covering important logistical elements for the construction phase of the project.
- Initiation of NaiKun Wind's process to identify and select a third equity partner to acquire an ownership position in the project; consistent with its original plan and the Company's role as a project developer. Early discussions with potential sources of project financing will also be conducted.
"NaiKun Wind is pleased to be entering the public-input phase of the environmental review for our project," said Paul Taylor, NaiKun Wind's President and CEO. "We are confident that through the course of the review, we will be able to demonstrate the net positive effects of the project, with lasting benefits not only for North Coast communities but also for the entire province of British Columbia."
In the coming quarter, NaiKun Wind will gather input from First Nations, local community representatives and the public through the environmental assessment review. The Company remains committed to developing the project in a manner that minimizes effects on the environment while maximizing benefits for local communities.
NaiKun Wind also expects to be advised in the coming months regarding BC Hydro's selection of the successful proponents in the Clean Power Call Request for Proposals.
Other milestone events will include the selection of a project and contract manager and the signing of reservation agreements to secure the supply of turbines and transmission system elements.
At March 31, 2009, NaiKun Wind had $19.52 million in cash and cash equivalents, compared to $22.68 at the end of December 2008. Expenditures in the quarter primarily reflect finalization of the Company's environmental assessment application.
During the quarter ended March 31, 2009, NaiKun Wind incurred a net loss of $3.44 million ($0.09 net loss per share), compared to a net loss of $2.10 million ($0.06 net loss per share) for the same period in 2008.
NaiKun Wind Energy Group Inc. is a British Columbia-based renewable energy company. The first phase of its 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. The project will also create an estimated 200 jobs during construction and 50 permanent jobs for maintenance and operations. 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.