- Minnova Corp. (MCI) has reached a tentative agreement from Manitoba Hydro to purchase the power line infrastructure to connect the PL Gold Mine
- The power line infrastructure consists of a partially refurbished 22 kilometre, three-phase 25kVa power line that connects the existing mine site electric distribution grid to the Manitoba Hydro electric grid at a sub-station located in Sherridon, Manitoba
- The purchase price for power line is $150,000 in cash
- The power line will become part of the core infrastructure required for the planned restart of the PL Gold Mine
- Minnova Corp. (MCI) is up 6.66 per cent and is trading at $0.16 per share at 12:56 p.m. ET
Minnova Corp. (MCI) has reached a tentative agreement from Manitoba Hydro to purchase the power line infrastructure to connect the PL Gold Mine.
The power line infrastructure consists of a partially refurbished 22 kilometre, three-phase 25kVa power line that connects the existing mine site electric distribution grid to the Manitoba Hydroelectric grid at a sub-station located in Sherridon, Manitoba.
The purchase price for the power line is $150,000 in cash.
Gorden Glenn, President and CEO of Minnova, described the acquisition in three parts:
1) The power line will become part of the core infrastructure required for the planned restart of the PL Gold Mine
2) Approximately $750,000 in current balance sheet liabilities related to a 2011 MB Hydropower refurbishment contract will be eliminated
3) The ownership of powerline is an opportunity to advance the company’s wholly-owned Minnova Renewable Energy strategy to develop and produce renewable and green energy and restart the PL Gold Mine utilizing renewable energy.
“Beyond contributing green energy to PL Gold Mine’s energy demand mix we also see opportunity to position Minnova Renewable Energy at the forefront of northern green energy transition and potentially expand its revenue base by selling power back into the existing electrical grid,” said Glenn.
“This is an exciting time for Minnova shareholder’s, gold focused investors and any investors seeking future renewable energy development exposure as we continue to advance discussions on financing and optimization of the planned restart of the PL Gold mine and add potential green energy production to our business plan.”
The transaction is expected to close in early January, subject to satisfaction of customary closing conditions.
Minnova Corp. (MCI) is up 6.66 per cent and is trading at $0.16 per share at 12:56 p.m. ET.