Coast Mountain Power Corp.
TSX VENTURE : MW

Coast Mountain Power Corp.

September 02, 2005 15:39 ET

Coast Mountain Power Corp.: Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 2, 2005) - Clifford Grandison, President of Coast Mountain Power Corp. (TSX VENTURE:MW), announced a non-brokered private placement of 1,000,000 common shares at a price of $1.50 per share. Proceeds from the issue, net of costs, will be used to finance the costs of advanced engineering and design of Coast Mountain's Forrest Kerr run of river hydroelectric project and to pay for costs related to the negotiation and preparation of construction contracts. The Company may pay a finders fee in connection with a portion of the offering.

Bechtel Canada Company has been engaged by the company to carry out the bulk of this work. When the work is completed, the company will have a fixed price turn-key construction contract for the related civil, mechanical and electrical work.

Funds will also be used to pay the costs of a detailed survey of the Forrest Kerr transmission line which include staking the exact location of power poles and right-of-way clearances. This survey will allow clearing the right-of-way to commence immediately and if necessary, continue through winter.

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)