Energy infrastructure company AltaGas Ltd. has agreed to purchase Canadian hydropower project developer NovaGreenPower Inc. for up to C$40 million (US$38.2 million).
NovaGreenPower’s parent company, NovaGold Resources Inc., announced July 31 it had reached a binding agreement to sell NovaGreenPower to AltaGas, based in Calgary, Alberta.
NovaGreenPower owns several run-of-river projects under development in northwest British Columbia, including 195-MW Forrest Kerr, on the Iskut River. (HNN 8/6/08) It also is pursuing development of three hydro projects in the same region with a total capacity of about 130 MW.
AltaGas said it would pay C$35 million (US$33.5 million) on closing, and C$5 million (US$4.8 million) subject to completion of conditions by Feb. 15, 2009. Canaccord Adams served as financial adviser to NovaGold, which acquired the NovaGreenPower hydro assets in 2006. (HNN 6/2/06)
NovaGold said the sale is consistent with the company’s strategy to realize the value of its non-core assets. It said it now plans to focus on advancing core mining projects Donklin Creek, Galore Creek, and Rock Creek.
NovaGold President Rick Van Nieuwenhuyse said AltaGas’ focus on rapidly advancing Forrest Kerr and the other hydro projects would facilitate development of transmission infrastructure. He said that infrastructure would support future power requirements of NovaGold’s Galore Creek copper-gold-silver mine and the communities of northwestern British Columbia.
AltaGas has retained the NovaGreenPower team, including Doug Brown, acting president of NovaGreenPower and vice president of business development for NovaGold, and Dan Woznow, vice president of operations for NovaGreenPower. The team will be based in new offices in Vancouver.