Tonbridge Power Announces MATL Project and Budget Update
June 23 2011 - 8:18AM
PR Newswire (Canada)
TORONTO, June 23, 2011 /CNW/ -- TSX Venture Exchange Symbol: TBZ
TORONTO, June 23, 2011 /CNW/ - After careful review, Tonbridge
Power Inc. (TSXV-TBZ) has determined at this time that at least
US$25 million in additional funding is required to complete the
construction of its MATL project. This represents an increase to
the US$5.8 million shortfall estimate previously disclosed in the
MD&A and press release in respect of the 2010 year end.
The full extent of the funding requirement will only be known when
certain variables, including discussions with key stakeholders,
have been addressed and resolved. The company's current credit
facilities are insufficient to fund this shortfall. As a result,
management is in discussion with its lenders, stakeholders and
others to address this estimated funding gap. It expects to make
further announcements as details emerge. The changes to MATL's
budgetary status can be attributed to a number of things. They
include a disruptive court decision in respect of eminent domain in
Montana, construction contractor disputes, construction and
regulatory delays, land access and acquisition of rights of way
("ROW") issues and general materials cost increases. All of these
issues have been intensely reviewed and are constantly being
evaluated for project impact. As previously announced, in
connection with the contractor disputes, construction efforts on
the transmission line have been halted. The company is currently
working with its contractor to resume construction activities in
Canada where they were stopped in March because of permitting
restrictions. Work resumption discussions on the substations
and the line in Montana are also ongoing. Although these are
challenging times, the company, is working towards meeting the
company's goal of delivering an operating transmission line by year
end 2011. Tonbridge Power Inc. is a Toronto-based developer of
electrical transmission assets, whose principal asset is a 100%
interest in Montana Alberta Tie Ltd. Shares of the Corporation are
traded on the TSX Venture Exchange under the symbol "TBZ". The
Corporation's financial statements and other filings can be found
on SEDAR. Should you wish to receive news via email, please email
info@tonbridgepower.com and specify "company news". Cautionary Note
Regarding Forward-Looking Statements This news release contains
"forward-looking statements", within the meaning of applicable
Canadian securities legislation, concerning the business,
operations and financial performance and condition of the Company.
Forward- looking statements include, but are not limited to,
statements with respect to future revenues. Generally, these
forward- looking statements can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or state that
certain actions, events or results "may", "could", "should",
"would", "might" or "will be taken", "occur" or "be achieved".
Forward-looking statements are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of the Company to be
materially different from those expressed or implied by such
forward-looking statements, including but not limited to: the
conditionality of the revenue contracts, risks related to the
financing or construction of the transmission line; risks related
to the performance of parties contracting for transmission
capacity; delays in obtaining governmental approvals, permits or
project financing or in the completion of development or
construction activities, requirements for additional capital,
government regulation, environmental risks as well as those factors
discussed in the section entitled "Risk Factors" in the Company's
Annual Information Form for the year ended December 31, 2005,
available on www.sedar.com. Although the Company has attempted to
identify important factors that could cause actual results to
differ materially from those contained in forward-looking
statements, there may be other factors that cause results not to be
as anticipated, estimated or intended. There can be no assurance
that such statements will prove to be accurate, as actual results
and future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on forward-looking statements. The Company does not
undertake to update any forward-looking statements that are
incorporated by reference herein, except in accordance with
applicable securities laws. Neither the TSX Venture Exchange nor
its Regulation Service Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release. To view this news release
in HTML formatting, please use the following URL:
http://www.newswire.ca/en/releases/archive/June2011/23/c8702.html p
Robert van Beers, Chief Executive Officerbr/
(416) 850-2150 email: a
href="mailto:rvanbeers@tonbridgepower.com"
font-style="italic"rvanbeers@tonbridgepower.com/a /p p Robert
McFarlane, Chief Financial Officerbr/ (416) 850-2150 email: a
href="mailto:rmcfarlane@tonbridgepower.com"
font-style="italic"rmcfarlane@tonbridgepower.com/a /p p Brisco
Capital Partners Corp.br/ Graeme A. Dick,br/ (403) 561-8989
email: a
href="mailto:graeme@briscocapital.com"graeme@briscocapital.com/a /p
p Please Visit the Company's Website at: a
href="http://www.tonbridgepower.com"www.tonbridgepower.com/a /p
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