Reservoir Capital Corp.

Reservoir Capital Corp.

March 17, 2009 07:30 ET

Reservoir Capital to Form a Joint Venture with Global EcoPower to Fund the Brodarevo Hydroelectric Projects and Development Company

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 17, 2009) - Reservoir Capital Corp. (TSX VENTURE:REO) ("Reservoir" or the "Company") is pleased to announce that it has signed a Memorandum of Understanding ("the Agreement") to form a Joint Venture with Global EcoPower ("GEP") to advance its Brodarevo 1 and Brodarevo 2 ("Brodarevo Projects") run-of-river hydroelectric projects in Serbia and to create a new Development Company to acquire and develop additional projects.

Under the terms of the Agreement, GEP can earn a 50% interest in Reservoir's wholly owned subsidiary, Renewable Energy Ventures Ltd. ("REV"), by funding all further costs to take the Brodarevo Projects to the stage of Bankable Feasibility and by arranging debt financing for their construction. The Brodarevo Projects are licenses to develop run-of-river hydroelectric projects with capacity totaling 48 MW on the River Lim in Southwest Serbia. The targeted production of 189 GWh/year of electricity is to be sold at preferential renewable energy tariffs and under long-term power purchasing agreements onto the local grid.

The second part of the Agreement foresees GEP funding the creation of a jointly owned (50% Reservoir, 50% GEP) Development Company that would be charged with the development of the Brodarevo Projects and with the acquisition and development of additional projects in Serbia and other countries in the region. Initially the Development Company is targeting an installed capacity, including the Brodarevo Projects, of 700 MW by 2015. Currently over 30% of Serbia's power generating capacity is hydroelectric, with 2,013 MW installed, most of which is run-of-river; the Serbian government estimates that there is potential to more than double this figure based on available sites in the country that are considered technically and economically feasible for hydro project development.

Miljana Vidovic, President and CEO of Reservoir commented: "We are delighted to have GEP as a partner to support our Brodarevo Projects and to work together to jointly build a substantial renewable energy business in Serbia and the region."

The Agreement between Reservoir and GEP is still subject to due-diligence and completion of a definitive agreement.

About Global EcoPower

GEP is a renewable energy developer based in Aix-en-Provence in France, founded by Jean Marie Santander (CEO), Philippe Perret (CFO) and Jean Paul Ingrassia (Director of Business Development), founders and former senior executives of Theolia, a French wind utility. GEP plans to build and operate 360 MW of solar power generating capacity in Europe, the Middle East and Africa by 2012; 1,200 MW of wind power in China by 2013; and is active in second-generation biofuel production in Europe and Africa. GEP's common shares trade on the Marche Libre of the NYSE Euronext Paris under the ISIN code of FR0010519082.

About Reservoir

Reservoir is a Southeast Europe focused project generator, with a mandate to acquire undeveloped natural resource opportunities. Reservoir has investments in precious metals exploration, environmental projects and renewable energy, with currently eight mineral exploration properties in addition to the Brodarevo 1 and 2 energy licenses in Serbia. Reservoir's common shares trade on the TSX Venture Exchange under the symbol "REO".

"Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release."

Contact Information

  • Reservoir Capital Corp.
    Miljana Vidovic
    +381 11 355 5290
    Reservoir Capital Corp.
    Miles Thompson
    (604) 662-8448
    Reservoir Capital Corp.
    Kim Casswell
    Corporate Secretary
    (604) 662-8448