Minerco Resources Inc. is a progressive developer, producer and provider of clean, renewable energy solutions in Latin America. The company announced today that it has entered into a definite agreement for the acquisition of a hydroelectric project known as “Chiligatoro Hydro-Electric” in Honduras.
The agreement provides for the company to acquire 100% of the 6 megawatt project from the Honduran company Rota Inversiones. Rota will receive 18 million restricted shares of Minerco in three installments while the company is responsible for outstanding costs to date and ongoing expenses through final design and continued operations of the project. Minerco will provide funding for the construction and development of the project, which it anticipates will begin in the latter part of 2010. The company will retain full control for the life of the project.
The Chiligatoro project is currently in the feasibility stage of development, allowing Minerco to participate in the design and construction of the project. The feasibility study was completed and submitted to the Honduran government natural resources and environmental ministry known as SERNA. The feasibility study was approved by SERNA in January 2010 and has been submitted for approval by the National Energy Commission of Honduras. The environmental impact study was also submitted to SERNA and approval is expected in the near future.
The president and CEO of Minerco Resources, V. Scott Vanis, commented on the agreement, “We are excited to enter into this definitive agreement to acquire the Chiligatoro Project in Honduras. Honduras represents an excellent environment to develop small to mid-range clean energy projects. The project, once approved, will provide Minerco with a substantial, long-term revenue base for years to come.”