Company in letter agreement to finance transmission line project
Tonbridge Power (TSX: V.TBZ, Stock Forum) saw its shares climb 29% to 24.5 cents Tuesday morning, as it announced that it has entered into a letter agreement with the Western Area Power Administration, a power marketing administration of the U.S. Department of Energy to finance a project to build a transmission line to interconnect the electricity markets of Alberta and the U.S.
Tonbridge, the 100% controlling shareholder of Montana Alberta Tie Ltd, which is developing the 300 MW, 230kV transmission line, says negotiations are underway with MATL for up to USD$161 million in senior debt, which it says is “an amount sufficient to complete the construction of the MATL project.”
MATL has also entered into negotiations with Western regarding certain partnership considerations with respect to the project, says Tonbridge.
Tonbridge notes that the letter agreement expires July 31 or upon funding, and the transaction will close upon the successful completion of due diligence and execution of definitive agreements between MATL and Western.
On the company’s Bullboard, SonicView said: “Well that is good news, 161 million? how much were they asking for? that should almost do the whole project with the other dollars they have..[sic]”
BckInBlck1 also noted: “Whooooa!!! Looking good. Wonder why WAPA hasn't said anything?? That will be interesting!!! Great news!!![sic]”
While stwatcher replied: “Wapa has not said anything because this is known as a term sheet. Tonbridge has been given and agreed to the terms now wapa has 45 days to have d-dil to make sure it is with in its specifications for financing[sic].”
