Run of River Power Inc.
TSX VENTURE : ROR

Run of River Power Inc.

October 21, 2005 08:00 ET

Run of River Acquires 95 MW in Pitt River Area

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 21, 2005) -

NOT FOR DISSEMINATION IN THE UNITED STATES

Run of River Power Inc. (TSX VENTURE:ROR) is pleased to announce that it has reached an agreement with Ledcor Power Inc. to purchase 100% of Northwest Cascade Power Ltd., a company which holds water licence applications for 8 projects totalling over 95 MW of potential installed capacity. The projects are strategically located northeast of Vancouver in the Pitt River watershed and are adjacent to the Mamquam watershed where Canadian Hydro Developers commissioned a project earlier this year. The Corporation is currently developing 3 projects, also located in the Mamquam, for tender to BC Hydro's next call for power anticipated in December of this year.

Under the terms of this agreement Run of River will pay $300,000 in cash to Ledcor, which represents their development costs to bring these projects to Step 2 in the Water licence application process. The acquisition is expected to close no later than November 30, 2005.

Jako Krushnisky, Run of River's President stated, "Our ongoing relationship with Ledcor has resulted in this acquisition; Ledcor constructed and provided interim financing for our Brandywine Creek project which is now delivering power to BC Hydro."

Scott Lyons, Senior Vice President, Ledcor Power stated, "These projects are part of an extensive portfolio that we have developed and our intention is to concentrate our efforts on larger projects in specific areas. Run of River's acquisition is part of this strategic direction and is a good fit for both parties."

About Run of River Power

Run of River Power Inc. is focused on the development and operation of hydroelectric power generation projects in the Province of British Columbia. The Corporation developed and operates the 7.6 MW Brandywine Creek project, which is located near Whistler BC, and is currently producing power for approximately 4,000 homes. The project was completed earlier this year and all the power output is sold to BC Hydro under terms of a 20-year contract. The Corporation proposes to develop five additional hydroelectric projects on streams and rivers located in the Province of BC.

About Ledcor

Founded in 1947, the Ledcor Group of Companies is one of North America's leading-edge construction companies, specializing in building, civil and industrial projects. With 14 strategically located offices throughout North America and decades of experience in constructing some of the most challenging projects, Ledcor has developed the expertise and capability to build any type of project. Ledcor Power Inc. is a wholly owned subsidiary within the Ledcor Group of Companies focused on the development of environmentally friendly energy projects in the Province of BC.


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Contact Information

  • Run of River Power Inc.
    R.G. ("Jako") Krushnisky
    (604) 946-9232
    or
    Run of River Power Inc.
    G. Scott Paterson
    Chairman
    (416) 368-6464