BIG NEWS OUT:
Navajo Signs Wind Turbine Manufacturing Supply Agreement With China Lao Gaixian Wind L.P. With an Estimated Value of US$65 Million
Tuesday 07/21/2009 4:36 PM ET - Market Wire
CLBN 0.012 -16.67%
Navajo Wind Energy Corp. (the "Company" and formerly Caliber Energy Inc.) (PINKSHEETS: CLBN) announces today that it has signed a wind turbine manufacturing supply agreement (the "Agreement") for the delivery and commissioning of 53 750 KW wind turbines to China Lao Gaixian Wind L.P., represented by PCA Wind Power OA Inc., for its 120.80 MW wind farm project in Liaoning Province, China (the "China Lao Gaixian Project").
"We are quite excited about the Agreement for the China Lao Gaixian Project. This project has a strategic value to Navajo as it represents our first order through our joint venture with Mingchuang Energy Manufacturing Co. Ltd.," said Barry Doyle, President and Chief Executive Officer of Navajo. "We are pleased to be working with a proven developer such as PCA Wind Power OA Inc. and we look forward to the beginning of the manufacturing phase of this agreement."
The Agreement includes provisions for supplying the China Lao Gaixian Project with 53 complete wind turbines, as well as testing and commissioning services. As is common practice for agreements of this nature in the wind industry, the turbine supply agreement is subject to a "notice to proceed," to be given by China Lao Gaixian Wind L.P. once a number of condition precedents have been met to PCA Wind Power's satisfaction and once final permitting, approvals and financing have been obtained by both parties. Under the Agreement, delivery of turbines would occur during the second quarter of 2010 provided that a notice to proceed is given in the fall of 2009. The Agreement also provides for operations and maintenance services to be provided to China Lao Gaixian Wind L.P. over a two-year period. This agreement is anticipated to result in approximately US$65 million in revenue over its duration.
