Reservoir Capital Corp.
TSX VENTURE : REO
FRANKFURT : ROC
BERLIN : ROC

Reservoir Capital Corp.

March 17, 2010 07:00 ET

Reservoir Signs Framework Letter of Intent With Torno to Develop Brodarevo

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 17, 2010) - Reservoir Capital Corp. (TSX VENTURE:REO)(FRANKFURT:ROC)(BERLIN:ROC) ("Reservoir" or the "Company") is pleased to announce that it has signed a Framework Letter of Intent ("the Agreement") with Milan-based Torno Global Contracting S.p.A. ("Torno") to support the development of its Brodarevo 1 and 2 hydropower projects in Serbia ("the Projects") and to jointly develop other energy and infrastructure business in the region.

Reservoir is nearing completion of Pre-Feasibility Studies on the Projects, defining technical feasibility, conceptual design and scope of work. Under the terms of the Agreement with Reservoir, Torno will acquire a 20% equity interest in the Projects and act as General Contractor for the development, in return for which it will provide financial and technical support to Reservoir for the following:

  1. Completion of feasibility work to define the best construction price;
  2. Completion of a Power Purchase Agreement to sell the power into the market;
  3. Completion of permitting for construction; and
  4. Project financing and execution.

Reservoir and Torno also plan to work together on the Company's nearby Vrutci hydropower project and to jointly target the acquisition and development of several hundred megawatts of primarily hydroelectric projects in the region by 2015.

Details of the transaction are subject to negotiation of Definitive Agreements and will be released as they become available.

About Torno

Torno Global Contracting S.p.A. is one of Italy's leading construction companies in infrastructure. Torno is currently active in a broad range of infrastructure construction projects around the globe and its experience includes having built more than 150 dams in places as diverse as Burkina Faso, China, Brazil and Turkey. For further details, please see the Torno website at www.torno.com.

About Reservoir

Reservoir is a renewable energy company, engaged in development of a 55MW hydroelectric project at Brodarevo in southwest Serbia. The Company has applied for a 32MW license at Vrutci, holds four geothermal exploration licenses and is studying various other hydroelectric and geothermal opportunities in the region. Reservoir also holds a substantial portfolio of precious and base metal exploration projects, which it is looking to divest. Reservoir's common shares trade on the TSX Venture Exchange (symbol "REO") and on the Frankfurt and Berlin Exchanges (symbol "ROC").

Neither the 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
    President
    +1 (604) 662-8448
    or
    Reservoir Capital Corp.
    Miles Thompson
    Chairman
    +1 (604) 662-8448
    or
    Reservoir Capital Corp.
    Kim Casswell
    Corporate Secretary
    +1 (604) 662-8448
    or
    Reservoir Capital Corp.
    Julia Maxwell
    Investor Relations - Vancouver
    +1 (604) 662-8448
    +1 (604) 688-1157 (FAX)
    info@reservoircapitalcorp.com
    www.reservoircapitalcorp.com
    or
    Reservoir Capital Corp.
    Chris MacIntyre
    Investor Relations - Toronto
    +1 (416) 346-7660