Coast Mountain Power Corp.
TSX VENTURE : MW

Coast Mountain Power Corp.

October 03, 2005 15:51 ET

Coast Mountain Power Corp.: Private Placement Closed

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 3, 2005) - Cliff Grandison, President of Coast Mountain Power Corp. (TSX VENTURE:MW), announced the company completed a non-brokered private placement of 1,000,000 common shares at a price of $1.50 per share for gross proceeds of $1,500,000. All of the shares are subject to a statutory hold period which expires on January 31, 2006. A finder's fee was paid to CIBC Wood Gundy, Canaccord Capital Corp., Leede Financial Markets, Inc., and Longfellow Industries (BC).

Proceeds of the issue, less costs, will be used to pay the costs of engineering and design of the Forrest Kerr powerhouse intake, tailrace and related civil electrical and mechanical works.

Funds from this issue will also be used to complete the Meziadin, Forrest Kerr Transmission line centre line survey, pole location and right of way clearances.

The Forrest Kerr/Meziadin transmission line designed by BC Hydro for Coast Mountain Hydro has a capacity to transfer up to 200MW of electricity in either direction and can be upgraded to 240MW and extended if demand develops for electricity north of Forrest Kerr.

Funds will also be used to commence transmission right of way clearance, tunnel portal preparation and legal costs associated with financing and construction contracts.

About Coast Mountain Hydro Corp.

Coast Mountain Hydro Corp., a wholly owned subsidiary of Coast Mountain Power Corp., is developing the Forrest Kerr Hydroelectric Project located on the Iskut River near its confluence with Forrest Kerr Creek, in northwestern BC. The project will have an installed capacity of 112 MW, and includes the development of a 184 km, 138kV AC transmission line to deliver the power to the BC Hydro grid at Meziadin Junction. Power generated from the project is sold under a 15-year electricity purchase agreement with BC Hydro for the delivery of 540GWh of electricity on an annual basis.

ON BEHALF OF THE BOARD OF DIRECTORS

COAST MOUNTAIN POWER CORP.

Clifford Grandison, President

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Coast Mountain Power Corp.
    Dan Woznow
    (604) 681-8680
    (604) 681-8646 (FAX)