Minerco Resources, Inc. Receives Honduran National Commission of Energy ("NCE") Conformation of the Long-Term Rate Structure for
June 28 2010 - 7:00AM
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 received official
verification and confirmation of the long-term rate structure from
the Honduran National Commission of Energy ("NCE") for the
company's Chiligatoro Hydro-Electric Project's 30 Year Operations
Contract.
The Honduran NCE verified and confirmed the long-term rate
structure for the 30 Year Operations Contract for the Chiligatoro
Project which is identified as Document Number 2006-E37. The NCE
previously approved all the terms of the Operations Contract with
the exception of the energy sales rate structure, which it has now
done.
The sales rate is published annually by Secretaria de Recursos
Naturales y Ambiente ("SERNA"), Honduras's Natural Resources and
Environmental Ministry. The average rate, based on Short-Term
Marginal Cost, for year 2010 is US$97.96 per mega-watt hour (MW-h)
as published by SERNA in La Gaceta on January 15, 2010, Section A:
Agreements and Laws No.32, 114, page 8.
As previously released, the Operations Contract defines an
initial capacity of 5.2 MW-h for a term of 30 years. Consideration
for increased capacity can be obtained based on final plant design.
Minerco expects to receive increased capacity approval after
submission of the Final Design. 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.
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. Therefore, the Operations Contract contains 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.
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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