Navajo Wind Energy Corp. Receives Financing Confirmation for 50% Joint Venture Partnership Interest

Strategic Insights -

Navajo Wind Energy Corp., a renewable energy company focused on creating electricity from wind power, has received a confirmation letter of financing from Xiyas Development Capital Ltd. for its 50% joint venture partnership interest in the CSRI Xuzhou Nantung wind farm project. This financing is in addition to the funding announced on January 20, 2009, and is debt-based, which will not affect the capital structure of the Company.

The joint venture project is an operational 35MW wind farm, which completed construction in January 2009. The facility's Phase I consisted of 10 wind turbines with a unit production capacity of 850kW each, Phase II has 10 wind turbines with a unit production capacity of 850kW each, and the final completed Phase III of the project is 12 wind turbines with a unit production capacity of 1500kW each. The total installed capacity is expected to be 35MW, with the 20 wind turbines' successful bid grid price at $0.081 per Kw hour and the remaining 12 wind turbines' successful bid grid price of $0.085 per Kw hour.

Key Takeaways:

  • Navajo Wind Energy Corp. has received financing confirmation from Xiyas Development Capital Ltd. for its 50% joint venture partnership interest in the CSRI Xuzhou Nantung wind farm project.
  • The joint venture project is an operational 35MW wind farm, which completed construction in January 2009.
  • The facility's total installed capacity is expected to be 35MW, with a successful bid grid price of $0.081 per Kw hour for 20 wind turbines and $0.085 per Kw hour for the remaining 12 wind turbines.
  • The operating profits for the project are expected to be $850,000 USD annually, anticipates an increase to $1.2M USD in 2009.
  • Navajo President and CEO, Barry Doyle, stated that the financing will put the company in a positive cash flow position for the first quarter of 2009.
  • The company has initiated the due diligence process with Xiyas Development Capital Ltd. for the financing of a second wind farm joint venture project.

Statistics:

  • Navajo Wind Energy Corp.'s stock closed yesterday at around three cents a share.
  • The company has not received the financing confirmation for its second joint venture project, which is expected to be completed within 60 days.
  • The joint venture project's operating profits are expected to increase from $850,000 USD annually to $1.2M USD in 2009.
  • The company anticipates the facility's operating efficiency to improve with the application of new technologies to the production process.

Sources:

  • Market Wire via COMTEX, "Wall Street News Alert's 'stocks to watch' this morning are: Navajo Wind Energy Corp. (PINKSHEETS: CLBN), GE (NYSE: GE), American International Group, Inc. (NYSE: AIG) and Apple, Inc. (NASDAQ: AAPL)"
  • Navajo Wind Energy Corp.'s press release, "Navajo Wind Energy Corp. Receives Financing Confirmation for 50% Joint Venture Partnership Interest in the CSRI Xuzhou Nantung Wind Farm Project"
  • Wall Street News Alert's disclaimer: "WSCF has been compensated Four Million shares, by a third party, NorthStar Capital Corporation, who is non-affiliated and may hold a significant position in the stock."