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Canadian Hydro makes offer to buy Glacier Power
Deal expected to close in August by Nancy Gardiner
NNSL (July 14/97) - Canadian Hydro Developers Inc. of Calgary is buying Glacier Power Ltd., the company that hopes to supply hydroelectric power to the NWT's new diamond mines. "The purchase takes effect depending on a Canadian Hydro Board decision and timing," Doug Main, president of Glacier Power said last week. "The closing will probably be the end of August, but that won't change anything in the agreement," he added. "There is an agreement in principal in place." "Canadian Hydro's interest was in having 100 per cent ownership of Glacier so they'd be in best possible position to raise money if and when required," he said. As a former owner of Glacier Power Ltd. Main sold Canadian Hydro his interest in Glacier Power and he's now working for Canadian as president of Glacier Power. Ownership changed on July 3, subject to Canadian Hydro Board approval. Glacier Power was incorporated as an NWT company in February, specifically for making water licence applications for its proposal to sell power to the future diamond mines, said Main. All the shareholders were from Alberta, however. The company recently applied for a licence to dam several rivers between the East Arm of Great Slave Lake and Lac de Gras, where the BHP Diamonds mine is under construction and where at least one other mine is expected. Canadian Hydro has developed three projects in Alberta, one each in B.C. and two in Ontario. John Keating, president of Canadian Hydro said he expects the deal to close the end of August. Main will be operating Glacier Power out of Yellowknife on a full-time basis and expects to be in Yellowknife by August. Glacier Power will be a wholly-owned subsidiary of Canadian hydro developments. "Timelines are still the same. Our year of regulatory environmental work, and community involvement and we have another year of design and procurement, then two years of construction," said Main. "People in communities are reviewing the applications right now and that's taking some time. There was a recent election in Lutselk'e and an assembly the week after that. Work is ongoing. That process will probably take months to go through." The deal with Glacier Power and Canadian Hydro is also subject to Toronto Stock Exchange approval. |