Nova Scotia-based Shear Wind announces C$5M loan for project development, operating expenses, as well as to advance funds to Shear Wind's wholly owned subsidiary, Vindt Resources
HALIFAX, Nova Scotia
December 23, 2010
– Shear Wind Inc. ("Shear Wind") (TSX VENTURE:SWX) announced today that Genera Avante Holdings Canada Inc. ("GAHC"), which holds approximately 62% of the common shares of Shear Wind ("Common Shares") on a fully-diluted basis, has agreed, subject to regulatory approval, to loan up to $5,000,000 to Shear Wind for required project development expenditures, operating expenses, as well as to advance funds to Shear Wind's wholly owned subsidiary, Vindt Resources Inc. Vindt Resources Inc will use the funds provided for required project development expenditures in Alberta as well as repayment of Vindt's promissory note with GAHC provided in August 2010. Shear Wind will issue an unsecured promissory note ("Note") to GAHC, in the principal amount of $5,000,000 with an initial draw down of $3,000,000 (the "Initial Draw"). The Note shall bear interest at 10% per annum. Fifty percent of the principal drawn on the Note, together with interest, shall be due on December 31, 2012 with the remainder due on December 31, 2013. If the amounts due and owing at each repayment date are not paid in full, the amounts due and owing under the Note at the maturity dates may be converted, in whole or in part, at the option of GAHC into Common Shares at a conversion price of $0.20
This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities of Shear Wind in any jurisdiction.
About Shear Wind
Shear Wind is headquartered in Halifax, Nova Scotia and is engaged in the exploration and development of renewable wind energy properties in Canada. Shear Wind is focused on building a strong company based on a secure and sustainable supply of clean wind energy. Shear Wind is committed to building shareholder value governed by environmental stewardship. Inveravante Inversiones Universales, S.L., an international corporation based in Spain, indirectly owns 62% of Shear Wind on a fully-diluted basis through Genera Avante Holdings Canada Inc., following its investment in Shear Wind in November 2009. The most advanced project is the Glen Dhu wind power project which is presently on track to begin commissioning turbines in December 2010 and to be fully operational by March 2011.Additional information on the various projects may be viewed on Shear Wind's website: www.shearwind.com.