CIVC plans to take over developer of Canadian offshore project

CANADA: Canadian Imperial Venture Corp (CIVC) has signed a letter of intent to take over Beothuk Energy through a merger, which is planning a 180MW offshore project in Canada.

Beothuk's proposed project is located in St George's bay
Beothuk's proposed project is located in St George's bay

Under the terms of the agreement, CIVC will issue one common share for every outstanding share of BEI up to a maximum of 62 million shares.

In February, Beothuk Energy chose a site for its proposed 180MW offshore wind farm in the province of Newfoundland and Labrador in Canada.

The wind farm would be sited in Saint George's Bay in the Gulf of Saint Lawrence and be made up of up to 30 turbines, implying the use of 6MW turbines, although a supplier has not yet been named.

Beothuk said that merger with CIVC would help the company to access funds from the public markets as it looks to "move its plans into high gear".

The completion of the deal is subject to acceptance by the Canadian TSX-Venture Exchange as well as a final agreement by the CIVC board of directors. Beothuk said that it expects to complete the deal on or around 1 November.

The company's plans include building facilities for the manufacturing of gravity-based foundations at the Port of Corner Brook and a wind farm service port at Port Harmon in Stephenville, both in Newfoundland.

Beothuk has requested an investigative permit from the provincial government for the proposed wind farm location. The project will have to clear a number of regulatory and planning hurdles before construction could start.

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