Polaris Infrastructure Inc. (PIF) ("Polaris" or the "Company"), a Toronto-based company engaged in the operation, acquisition and development of renewable energy projects in Latin America, announced today that it signed a Memorandum of Understanding ("MOU") to acquire 100% of the equity of a Panama-based 10 MW run-of-river hydro project called Chuspa (the "Project") from Navitas Holdings Inc. ("Navitas").
The key terms of the MOU state that:
The Project has the following attributes:
"We are very pleased to have signed this MOU" stated Marc Murnaghan, Chief Executive Officer of Polaris Infrastructure, "It is structured in a way that enables Polaris to ensure that we are confident that key risks associated with Covid-19 can be managed before we commence construction of the project and close the acquisition. We are optimistic this can be done in the coming months. The addition of a further run-of-river hydro project provide further geographic diversification by investing in Panama and is in keeping with the strategy of diversification and growth in the renewable sector within the region. We are also leveraging the experience gained recently in Peru, as the transactions have many similarities. We strongly believe that by adding a third country to the generation platform is beneficial to our shareholders. In addition, we believe that there are other opportunities to grow in Panama and partnering with Navitas on this project will provide a platform from which to grow."
The MOU is non-binding and there is no assurance that the transaction will be completed on the terms described above or at all.
Source: Polaris Infrastructure Inc.
Date: Jun 16, 2020