Maxim Power Corp.
TSX : MXG

Maxim Power Corp.
Summit Coal Inc.

Summit Coal Inc.

December 15, 2011 17:53 ET

Maxim Power Corp. and Ridley Terminals Inc. Conclude Long Term Terminal Services Agreement

CALGARY, ALBERTA--(Marketwire - Dec. 15, 2011) - Maxim Power Corp. ("MAXIM") (TSX:MXG) announced today that its wholly owned subsidiary, Summit Coal Inc. ("Summit"), and Ridley Terminals Inc. ("Ridley") have executed a long term terminal services agreement for the shipment of coal through Ridley's Prince Rupert terminal for a ten year term commencing January 1, 2015, with an option to renew for an additional two year period. Summit is the General Partner for Summit Coal Limited Partnership.

The agreement provides Summit with firm terminal capacity and terminal processing services to enable the majority of Summit's proposed coal production to access the valuable seaborne coking coal market. Signing this agreement reduces the development risk of its new coal mine as Summit advances to the construction phase of its Mine 14 project ("M14"). The new agreement contemplates Summit shipping up to 750,000 tonnes of metallurgical coal from its newly developed mine in 2015 and thereafter 900,000 tonnes per annum through to 2024.

The terminal services agreement is an important step forward as Summit moves towards production of metallurgical coal from its mine. Summit has secured firm delivery dates for critical mining equipment and intends to commence construction of the mine early in 2012. The mine represents a valuable metallurgical coal resource and is also an important part of MAXIM's overall fuel supply strategy that will see production of residual fuel product sufficient to meet the existing fuel requirements of the Milner power plant as early as 2013 and will support a portion of the fuel requirements for MAXIM's proposed 500 MW Milner expansion project.

Ridley Terminals

Ridley Terminals is a Canadian Federal Crown Corporation that is located in Prince Rupert, British Columbia. Ridley Terminals is the most northern deep-water port in North America and has the capacity to handle capesize vessels up to 250,000 deadweight tonnage. Current handing capacity is 12 million tonnes which is undergoing an expansion up to 24 million tonnes. The facility is serviced by the Canadian National Railway and is well positioned to handle coals from a variety of North American origins.

About Summit Coal

Summit Coal is a coal exploration and development company and is part of the MAXIM group of companies. Its principal asset is M14, located near Grande Cache, Alberta, Canada.

About MAXIM

Based in Calgary, Alberta, MAXIM is an independent power producer, which acquires or develops, owns and operates innovative and environmentally responsible power projects. MAXIM currently owns and operates 45 power plants in western Canada, the United States and France, having 815 MW of electric and 117 MW of thermal net generating capacity. MAXIM trades on the TSX under the symbol "MXG". For more information about MAXIM, visit our website at www.maximpowercorp.com.

Statements in this release which describe MAXIM's intentions, expectations or predictions, or which relate to matters that are not historical facts are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties which may cause the actual results, performances or achievements of MAXIM to be materially different from any future results, performances or achievements expressed in or implied by such forward-looking statements. MAXIM may update or revise any forward-looking statements, whether as a result of new information, future events or changing market and business conditions and will update such forward looking statements as required pursuant to applicable securities laws.

Contact Information

  • Maxim Power Corp.
    John R. Bobenic
    President and CEO
    (403) 263-3021

    Maxim Power Corp.
    Michael R. Mayder
    Vice President, Finance and CFO
    (403) 263-3021