Run of River Power Inc. Washes Over Biomass Corporation

The acquisition is subject to the completion of a definitive agreement and approval by the TSXV and is expected to close within the next three months. ROR will issue 4,000,000 shares for the acquisition, subject to a voluntary escrow agreement. An additional 1,000,000 shares of ROR could be issued to PNBC shareholders should it achieve an additional Electricity Purchase Agreement ("EPA").

PNBC is proposing a 30 MW biomass power plant to be located near Hazelton, BC. The proposed plant would produce in excess of 240,000 MWh/yr of green, sustainable energy, or electricity for approximately 24,000 homes annually. PNBC recently responded to BC Hydro's Request for Proposal ("RFP") to secure an EPA, potentially generating in excess of $30 million annually to ROR. Commercial operation is targeted for Q3, 2011.

Jako Krushnisky, President of Run of River Power stated, "With the addition of the PNBC opportunity we are a significant participant in the Bioenergy space."

PNBC's President, Rick Connors added, "This project will contribute significantly to the economic development of the region while meeting the sustainability objectives of both the Gitxsan First Nations and the Provincial Government. We are pleased to be working with ROR."

PNBC has entered into a definitive agreement with the Suskwa Chiefs Economic Corp. ("Suskwa") that provides for the Suskwa to acquire up to 40% of PNBC of which 20% would be available from the retained interests of the founding shareholders of PNBC and the additional 20% from ROR at fair market value. In addition, the Hereditary Chiefs of the Suskwa Watershed have given their support.

PNBC has also entered into a 20 year, renewable, Residual Fibre Supply Agreement with the Suskwa and Gitxsan Forest Enterprises Inc. for the required supply of wood waste fuel to the PNBC electricity generating facility. A shareholder and Director of ROR is also a 25% shareholder and Director of PNBC.

TheBioenergySite News Desk

Sign up for our
regular news updates

Latest Bioenergy Industry News

•   Biofuel Subsidies in China
•   CME: Crude Oil Prices Impact Livestock Production
•   €50m Set for Wind Farm Investment
•   Planning Notice for Aegir Offshore Wind Farm Submitted
•   Agreement on Viability of Mammoth Ethanol Facility
•   EPA Applauded for Biodiesel Rule in 2009
•   Type of Physic Nut to Undergo R&D
•   Sweet Potatoes Entering Biofuels Arena
•   Investments Funded in Ethanol-making Microbe
•   Sugarcane Expansion to be Restricted