Tonbridge agrees to finance MATL construction

2009-06-23 08:16 ET - News Release

Mr. Johan van't Hof reports

TONBRIDGE POWER INC. ANNOUNCES LETTER AGREEMENT TO FINANCE MATL CONSTRUCTION

Tonbridge Power Inc. has entered into a letter agreement with the Western Area Power Administration, a power marketing administration of the U.S. Department of Energy.

Pursuant to the agreement, negotiations are under way with Montana Alberta Tie Ltd. (MATL) for up to $161-million (U.S.) in senior debt, an amount sufficient to complete the construction of the MATL project. In addition, MATL has entered into negotiations with Western regarding certain partnership considerations with respect to the MATL project.

This financing will be provided pursuant to Section 402 of the American Reinvestment and Recovery Act of 2009. This transaction will close upon the successful completion of due diligence and execution of definitive agreements between MATL and Western. The letter agreement expires July 31, 2009, or upon financing.

The company is the 100-per-cent controlling shareholder of MATL, which is developing a 300-megawatt, 230-kilovolt transmission line to interconnect the electricity markets of Alberta and the United States.