SOURCE: Turkpower

October 25, 2010 09:12 ET

TurkPower Corporation Announces Shareholder Update

NEW YORK, NY--(Marketwire - October 25, 2010) -  TurkPower Corporation (OTCBB: TRKP) (the "Company") is pleased to announce the following updates on previously announced projects.

Solar Applications
The Company completed its first round of solar license applications on behalf of a consortium of Turkish energy companies for a total capacity of 410 megawatts ("MW"). The Company will lead and manage the entire license application process for its clients, from project documentation to submission of the license application with the Turkish Ministry of Energy. The Company was paid 50% of its consulting fee and the balance is to be paid upon the start of the actual application process, plus there is a potential success fee in the form of participation of the client's solar licenses, if granted.

Kuluncak Iron Ore Mine
After completion of the due diligence for the equity purchase into the Kuluncak iron ore mine, which is located in the Malatya area of Turkey, the Company has decided to move forward and is in negotiations with several banks, asset backed lenders and other investors regarding the terms and conditions of the financing. The Company anticipates completing the transaction by the end of 2010. If the Company decides to not to proceed with the transaction, the deposit of $1,500,000.00 is fully refundable to the Company. The Company has the option to purchase the remaining 50.1% of the Kuluncak iron ore mine. The mine is an open pit mine and has reserves in excess of 20,000,000 metric tons for a value greater of $1bn based on a discounted iron ore price. Exxaro established a two year feasibility study, in which more than a thousand of test drillings and 3D seismics, costing approximately twenty-eight million dollars, were performed.

Thermal Power Plant (Coal Power Plant)
The Company holds a consulting & sell mandate from Horizon Enerji Dagitim ve Elektrik Uretim A.S. ("Horizon") to consult Horizon in the development, construction and financing of its 1320MW capacity Coal Power Plant ("Thermal Power Plant' or "TPP") project in the Ceyhan area of Turkey. The Company will perform consulting services and present the project to qualified investors. The total investment volume is approximately $2bn, of which 30% is to be in the form of equity. Pursuant to the agreement, the Company shall receive consulting fees upon closing of the Horizon TPP project for its consulting and financing services. In addition, the Company shall receive a 0.5% success fee upon completion of up to a 30-year electricity distribution deal for Horizon and a 2.0% success fee upon completion of an electric production deal for Horizon.

About TurkPower Corporation
TurkPower Corporation (OTCBB: TRKP) is a Turkish-American consulting and service operations firm with a strong focus on the booming Turkish energy market. TurkPower offers its domestic and international clients consulting services and acts as a full service operator for wind, hydro, solar, coal and geothermal energy parks in Turkey. In addition to its energy business, TurkPower aims at becoming a large player in the Turkish mining industry by acquiring and consolidating operational mines with proven reserves, utilizing economies of scale to increase returns.

Safe Harbor Statement
The statements by our officers, and other statements regarding optimism related to the business, consulting, service operations, expanding exploration and development activities and other statements in this press release are forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995. Such statements are based on current expectations, estimates and projections about the Company's business and subject to successful financing. Words such as expects, anticipates, intends, plans, believes, sees, estimates and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict. Actual results could vary materially from the description contained herein due to many risk factors that affect the industry the Company operates in and other risk factors listed from time to time in the Company's Securities and Exchange Commission (SEC) filings under "risk factors" and elsewhere.

Contact Information

  • TurkPower Corporation
    100 Park Avenue
    New York, New York 10017
    T 212-984-0628
    F 212-880-6499