Navajo will receive gross proceeds of $15 million for the issuance of a promissory note, which is subject to a hold period of two years plus one day from the date of issuance in accordance with the agreement. The funding is expected to be received on November 16, 2009, with the net proceeds of the third tranche being approximately $13.8 million after deducting the placement agents’ fees and estimated offering expenses.
Navajo will allocate $13,500,000 of the net proceeds to fund the previously announced acquisition of 200 MW Xinjiang Wind Farm Project ("Xinjiang"). The remaining funds will be used as working capital for the Company. To date the Company has received $18.4 million of which $18 million have been used to fund the 200 MW Xinjiang Wind Farm Project.
Navajo Wind Energy Corp. (the “Company” and formerly Caliber Energy Inc.) (PINK SHEETS: CLBN – News), announces that it has begun negotiations for a Joint Venture Partnership with Mingchuang Energy Manufacturing Co. Ltd. to manufacture wind turbines internationally and further announces that the two companies have signed a Turbine Supply and Purchase Agreement for 80 wind turbines for the Company’s Xinjiang wind farm project.
Mingchuang, a developer of several types of wind turbine products, said it has agreed to begin negotiating a joint venture partnership with Navajo Wind Energy Corp. to manufacture and distribute wind turbines on an international level. In regards to the turbine supply and purchase contract, Mingchuang expects to have all 80 turbines delivered to the Xinjiang site before February 23, 2010. The Company’s strategic relationship with Mingchuang is unique, as Navajo will take possession of all 80 turbines without having to endure the 2-3 year delivery time facing the majority of existing wind farm developers.
"We are ecstatic to not only announce that we intend to have all 80 turbines delivered to our Xinjiang project before the end of first quarter of 2010, but we are also very appreciative to be involved in negotiating a joint venture partnership for a stake in the turbine manufacturing sector. These developments move Navajo several steps closer to an exclusive level in the alternative energy marketplace. Not only would the operating joint venture allow us to assist in supplying turbines to an increasing market demand; the equipment purchase contract gives the Company first priority in getting our projects expedited at an unprecedented pace," says Mr. Barry Doyle, CEO of Navajo Wind Energy.
With explosive growth for wind power globally, the industry is seeing an ever growing waiting list for the delivery of wind turbines. Many believe that Chinese turbine companies may be a significant part of the solution as China increases production to meet the export demand. The world’s wind power industry continues to thrive with the vigorous demand for turbine supply brought on by increasing oil prices, stricter emission laws and the growing concerns over climate change.
Navajo Wind Energy Corp. is a renewable energy company focused on the development of more than 500 megawatts of clean wind energy to drive its future revenues and growth. The Company is pursuing significant opportunities to provide clean wind power to the growing demand in China. With the key acquisition of wind farm and power trading company Guangzhou Jianianxiang Co. Ltd, Navajo will become one of only a few companies licensed to trade electrical power in and outside of China.
Navajo Wind Energy is developing projects in the mainland China. These projects range in size from 10 – 100 MW and will total nearly 500 MW of wind power, enough to power almost 200,000 homes per year. Some projects are constructed in partnership with large turbine manufacturers, with Navajo Wind Energy retaining an ownership share and involvement in the ongoing operation to ensure a local, domestic presence.
Others are handled completely by Navajo or in concert with other investors. Whatever is needed to get a renewable energy project up and running, we can make it happen. Our complete range of vertical integration capabilities is truly unique amongst U.S. alternative energy companies.
Company acquired a management team and the rights to three wind projects in China in December of 2007. One of the wind projects is currently under development. The acquisition officially closed in January 2008. Navajo has negotiated agreements with municipal and provincial governments in China to develop up to 500 megawatts (“MW”) of wind energy.