|The Board of Directors of Plutonic Power Corporation. (PCC - TSXV) is pleased to announce that Plutonic has completed the purchase of a private British Columbia based independent power company, ("Power Co."). Power Co. was founded by the consulting engineering firm Knight Piesold to become a green power producer by generating electricity through run of river hydro electric power generation, and is being acquired from a wholly owned subsidiary of Knight Piesold. The independent power generation industry in British Columbia is in its infancy and recent Provincial government mandates have created an exceptional opportunity in this area.
Power Co. currently has licenses to generate power for three drainage basins near Hope ("Gems Creek Projects"), nine drainage basins in Bute Inlet (the "Bute Inlet Projects"), three drainage basins in the vicinity of Toba Inlet (the "Toba Inlet Projects") and three drainage basins in the vicinity of Knight Inlet (the "Knight Inlet Projects"). The projects near Hope collectively will have combined installed capacity of about 50 megawatts ("MW") and the potential to generate approximately 200 gigawatt hours per year ("GWh/year"). Preliminary capital cost estimates for the Gems Creek Projects are $75 million, the Bute Inlet Projects, Toba Inlet Projects and Knight Inlet Projects collectively will have combined installed capacity of about 883 MW and the potential to generate approximately 3126 GWh/year. Preliminary capital cost estimates for the three groups of projects are $1,200 million.
The Gems Creek Projects, which range in size from 11 to 22 MW of installed capacity, have been developed over the last two years by Knight Piesold. Hydrological, environmental and engineering design studies have been ongoing and no major obstacles appear to be in place that would stop Plutonic from submitting these Projects in the 2004 call for tender process expected from BC Hydro.
The remaining projects, which range in size from 24 to 121 MW of installed capacity, have recently been identified by Knight Piesold engineers as having very favourable characteristics for run of river installations. However due to their remote locations connection to the transmission grid will be a challenging factor in commercializing these projects.
The purchase price of Power Co. was the issuance to the shareholder of Power Co. of a 20% equity interest in the capital of Plutonic and further share issuances such that the Power Co. shareholder will maintain such 20% interest until Plutonic has raised an aggregate of $1 million, of which $567,500 has been raised concurrent with the acquisition of Power Co. To date Plutonic has issued 1,532,500 shares to the shareholder of Power Co.
The $567,500 was raised through a non brokered private placement of the sale of 2.27 million units at a price of $0.25 per unit. Each unit consisted of a common share and a one-year common share purchase warrant the exercise price of which will be determined following one day of trading in the shares of the company. As a result of the completion of the acquisition and the financing Plutonic has 7,662,500 common shares issued and outstanding.
The Board of Directors of Plutonic now consists of Donald McInnes, President, R. Stuart Angus, William Lindqvist, Walter Segsworth, Michael Volker and recently appointed Jeremy Haile. The corporate secretary will continue to be Rupert Legge.
The Company's shares will recommence trading at the opening of the market on May 18, 2004.
For further information on the transaction please call Donald McInnes at Plutonic Capital at 604-669-4999 or visit the Plutonic website at http://www.plutonic.ca.
On behalf of the Board of Directors
PLUTONIC POWER CORPORATION
Donald McInnes, President
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