Mercator Gold PLC has entered into a partnership with Remote Energy Solutions LLC (RES) to develop the Warm Springs solar power project in New Mexico. This project is being developed in close proximity to the Copper Flat copper-gold-molybdenum-silver project being developed by Mercator's subsidiary, Warm Springs Renewable Energy Corp. (WSREC).
A project between 20 MW and 80 MW is planned for the site. RES will coordinate planning, permitting and development. Permitting is targeted for completion this year, and construction is targeted to commence in 2011.
Under the terms of the agreement, Mercator will hold a minimum 70% interest in WSREC. RES will hold an initial 10%, with rights to acquire up to 30% by contributing to construction costs.
The estimated construction cost of a 20 MW facility is in the range of $60 million to 80 million. It is anticipated that this capital requirement will be met by means of project-level debt and equity financing. Both traditional flat-plate photovoltaic and newer concentrating solar technologies are being evaluated for the project, the companies add.
SOURCE: Mercator Gold