Minerco Resources, Inc. Obtains Rights to $140 Million, 30 Year Operations Contract With the Honduran Government for the Chiliga
June 25 2010 - 4:01PM
Marketwired
Minerco Resources, Inc. (OTCBB: MINE), a progressive developer,
producer and provider of clean, renewable energy solutions in Latin
America, announced today the company has obtained the rights to the
US$140 million, 30 Year Operations Contract with the Honduran
government for its Chiligatoro Hydro-Electric Project.
The Chiligatoro Project's 30 Year Operations Contract, granted
by Secretaria de Recursos Naturales y Ambiente ("SERNA"),
Honduras's Natural Resources and Environmental Ministry,
establishes an initial capacity of 5.2 mega-watts per hour (MW-h)
for a term of 30 years. As previously released, consideration for
increased capacity can be obtained based on final plant design and
SERNA approval. Minerco expects to receive increased capacity
approval after submission of the Final Design.
The Operations Contract defines an initial capacity of 5.2 MW-h,
which equates to 45,552 mega-watts per year, and a term of 30 years
for a total of 1.37 million mega-watts over the term of the
agreement. The Contract also grants a "First Right of Refusal" for
renewal and allowances for all generation, sales and transmission
of energy from the Chiligatoro Project. Additionally, the
"Transmission Clause" provides Minerco with the ability to charge
transmission fees from other operators through the Minerco owned
transmission lines.
The Contract requires approval on land purchases, environmental
impact and local community approval. The Contract then passes to
the Honduran National Congress for ultimate approval. Once approved
by Congress, the Chiligatoro Operations Contract becomes a recorded
Honduran law.
Energy sales rates are defined by National Decree, based on
season and peak hours and paid in US Dollars for the life of the
Contract. Rates are based on the Short Term Marginal Cost which is
US$97.96 MW-h for the year 2010 as published by SERNA. For
electricity generation projects utilizing renewable energy,
Honduran Law has provided a 10% price incentive over the short-term
marginal cost for a period of 15 years and a tax exemption for a
period of 10 years.
The Operations Contract defines a sales rate of US$107.76 per
MW-h (with incentive) for the first 15 years, or US$73.6 million.
The following 15 years will utilize a rate of US$97.96 per MW-h, or
US$66.9 million. Based on the quoted Short Term Marginal Costs and
legislative incentives, the 30 Year Chiligatoro Operations Contract
is valued at US$140.5 million.
"Concluding these negotiations and obtaining the rights to the
US$140 million, 30 year Operations Contract for our Chiligatoro
Project is a major accomplishment for Minerco and our shareholders.
This Agreement not only landmarks our new green energy vision for
Honduras and Latin America but will be a significant source of
revenue and growth for our company. Working with the government and
people in Honduras has been fascinating and enjoyable. I, and
Minerco, look forward to a long and mutually beneficial
relationship in Honduras," said V. Scott Vanis, President and CEO
of Minerco.
Safe Harbor Statement This release contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Act of 1934 that are
based upon current expectations or beliefs, as well as a number of
assumptions about future events. Although we believe that the
expectations and assumptions upon which they are based are
reasonable, we can give no assurance that such expectations and
assumptions will prove to have been correct. Some of these
uncertainties include, without limitation, the company's ability to
perform under existing contracts or to procure future contracts.
The reader is cautioned not to put undue reliance on these
forward-looking statements, as these statements are subject to
numerous factors and uncertainties, including without limitation,
successful implementation of our business strategy and competition,
any of which may cause actual results to differ materially from
those described in the statements. We undertake no obligation and
do not intend to update, revise or otherwise publicly release any
revisions to these forward-looking statements to reflect events or
circumstances after the date hereof or to reflect the occurrence of
any unanticipated events. Although we believe that our expectations
are based on reasonable assumptions, we can give no assurance that
our expectations will materialize. Many factors could cause actual
results to differ materially from our forward-looking statements.
C. Jones Consulting, Inc. is being compensated $4000.00/month to
handle Investor Relations.
Please contact: C. Jones Consulting, Inc.
cjones@cjonesconsulting.com
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