It has been a very active day for FEWP today after announcing big news yesterday about a new wind farm project in China. In late trading, shares of the Company were up more than 12 percent at $0.41 per share on volume of 1 million shares compared to its average daily volume of about 243,000 shares. FEWP has a market cap of $17 million and a 52-week range between $0.12 and $1.51 per share.
Far East Wind Power Corp. (OTC:FEWP) has entered into a binding Letter of Intent ("LOI") with Tianlanhengfeng Electrical Power Corporation of Hohhot, Inner Mongolia (the "Owner") in order to jointly develop and operate a wind farm project located in Wulatehou Qi, Inner Mongolia, China (the "Project").
The Mongolian project is planned for a total capacity of 300MW with a first phase of 50MW. Development plans call for a total of 6 phases at 50MW each. The Owner has obtained all the necessary approvals and permits from the local government and has commenced construction.
Far East and the owner plan to establish a Joint Venture (JV) in order to develop the first 50MW collectively and then aim to proceed with ongoing phases to completion. Details regarding the establishment of the JV will be announced upon completion of negotiations.
James Crane, Company CFO, stated, "We continue to take advantage of a niche marketplace in China. As previously stated, Chinese state-owned enterprises are developing wind farms but there is not enough development to meet China's stated renewable energy goals and many entrepreneurs in China are attempting to enter the wind farm marketplace. Consequently, we are diligently working with these entrepreneurs to provide them with capital and refine their business plans so that, as partners, we can develop assets that will generate substantial mutual cash flow for many years to come."
Far East's Chairman and CEO, Liu Xiaobu, states, "We are very confident regarding this project as it is a mature and highly promising prospect. We also look forward to a long-term relationship with Mr. He Jianxun, Chairman of Tianlanhengfeng Electrical Power Corporation, a well-known and respected leader in the industry who has shown great interest and enthusiasm for our proposals and has indicated the desire to sign a definitive agreement as soon as reasonably possible."
Far East Wind Power aims to generate clean and profitable energy in one of the world's fastest growing energy sectors through access to a portfolio of utility-class wind power development projects. Far East will inject innovation to drive cost out of turbine manufacturing, introduce new technologies and strategic relationships, and aggressively pursue all available low costs of capital to deliver the most competitive cost per capacity and highest rates of return in the Asian marketplace.
For more information, visit: www.fareastwind.com.
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