SOURCE: Turkpower

December 01, 2010 10:07 ET

TurkPower Corporation Announces Significant New Coal Power Plant Mandate

NEW YORK, NY--(Marketwire - December 1, 2010) - TurkPower Corporation (OTCBB: TRKP) (the "Company") announced today that is has signed a consulting and sell mandate with the owner of a lignite fired thermal power plant project, to consult in the development, construction and financing of its 500MW capacity lignite thermal power plant ("TPP") project in Konya, Turkey. The TPP project comes including a lignite mine which is dedicated exclusively as the fuel source for the project. The economical lignite reserves are calculated to be 152,000,000 million metric tons and can supply the TPP for up to 42 years; life cycle of the TPP is 30 years. The mine shows an average lignite thickness of 12 meters and the licensed mining area is 1,852 acres and the license is valid for 42 years. Site exploration studies for a bankable mining plan were conducted by North American Coal Corporation. Total investment necessary to fund the project is approximately $1.26 billion, 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 TPP project for its consulting and financing services. Construction is to commence within 12 months after signing of an agreement with the buyer or investor of the project. Preliminary design was completed by Foster Wheeler, USA.

Ryan E. Hart, the Company's Chairman commented: "The Konya TPP project represents a huge opportunity for TurkPower and we are very pleased to be consulting this project on an exclusive basis. Turkey which was the second fastest growing economy in Q1 and Q2 of 2010, and also home of the second fastest growing energy market in the world, is still growing at a very high pace and is expected to do so in the next decade. The daily growing power demand can only be satisfied with large investments in the Turkish energy sector. The Company's management is working on signing more similar projects in the fields of coal and hydro power plants in the coming months." The Company would like to caution its investors that while it is very excited and optimistic about the lignite TPP mandate and other similar large projects, there remain uncertainties and the Company will not be compensated for its efforts until a binding agreement with a purchaser or investor for the lignite TPP project has been signed.

About TurkPower Corporation
TurkPower Corporation 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