Windiga Energy Inc., is a Canadian-based independent company focused on developing, owning and operating renewable energy facilities on the African and Latin American continents. Targeted countries typically have little or no domestic energy-related resources yet have an increasing demand for energy to support economic growth. Local governments have a strong desire for new supply and support independent power producers such as Windiga. The current electricity cost for several West African countries is up to $0.35/kWh.
During 2013 and in the first quarter 2014 the Corporation invested approximately $2.2 million in common shares of Windiga Energy Inc. Windiga has a number of solar and biomass projects in the pipeline, at various stages of evaluation and negotiation.
Windiga’s inaugural project will be a 20 MW solar plant in the country of Burkina Faso. The Zina Project, estimated to cost US$50 million, is well advanced: the power purchase agreement has been signed and key permits have been obtained. Windiga is in the process of raising approximately $15 million in equity, and it expects to raise approximately US$40 million in project debt financing through Africa-focused multi-lateral institutions. Construction is expected to commence in the 3rd quarter of 2015.
Dundee Energy is not participating in the proposed equity raise and therefore its ownership in Windiga (on a fully-diluted basis) will be reduced from its current ownership level of 47% to approximately 17.5% upon completion of the financing.