SALT LAKE CITY, UT--(Marketwire - June 29, 2010) - Blue Castle Holdings Inc. (Blue Castle), developer of a planned nuclear power plant projects in Green River, Utah has entered into an agreement with LeadDog Capital L.P. for private equity financing. The equity financing will be used for the continued development of the proposed new nuclear power plant project. Under the terms of the agreement, LeadDog Capital has committed to provide up to $30 million in new capital in exchange for newly issued Blue Castle common stock. The financing will take place in multiple tranches over a 3 year period. The schedule for stock purchases is to be established at the sole discretion of Blue Castle.
"This agreement provides Blue Castle with a flexible financing option that allows Blue Castle to raise and deploy capital when necessary and only under optimum conditions. The structure of this capital is very complimentary to our licensing schedule," said Aaron Tilton, CEO of Blue Castle Holdings.
The Blue Castle Project is considered the leading new nuclear deployment project in the Western US. Blue Castle has secured difficult to obtain water leases essential for running a nuclear power plant. The planned site is located in Emery County, and zoning has been changed to accommodate the nuclear plant project. The project is in the Nuclear Regulatory Commission's budget cycle to begin the site permit application licensing review in 2011. Utah is a great location not only because of good physical site characteristics but the State of Utah officially supports new nuclear development with financial incentives. The project is well placed to efficiently support projected new market demands for electricity.
The Blue Castle project has attracted the interest of over 15 utilities, which would represent 4500MWe of interest in the project. The project will help address the significant need for economic options for new generating resources facing many utilities in the Western US.
The Blue Castle Project provides an economic option to utilities for participation in a fully licensed new nuclear plant project at an acquisition cost of 4-7% of the station's estimated construction cost. This should result in greatly reduced project development risk and will be designed to provide utility companies with a high degree of confidence for timely new electric generating assets.
Blue Castle Holdings plans to maintain a long term equity position in the project as a merchant developer. It is anticipated that the resulting 2-3 unit nuclear power plant of 3000MWe will power about 2.25 million homes.
Upon completion, the proposed 2-3 unit nuclear plant is projected to generate between 800 and 1100 permanent jobs, depending on plant size and type. These jobs are expected to pay on average about $65,000 per year. Building 2-3 new nuclear units could also result in the creation of 1,000 to 2,500 jobs during construction, with peak construction employment as high as 4000 jobs. The average construction wage for such work is expected to be approximately $85,000 per year
About Blue Castle Holdings
Blue Castle Holdings Inc. is a Utah-based company developing the leading new nuclear plant site in the Western U.S. The Blue Castle business model is to select, acquire, enhance, and license plant sites which are well suited for the deployment of new nuclear power generation. More information about Blue Castle Holdings can be found at: www.bluecastleproject.com
About LeadDog Capital
LeadDog Capital L.P. is a private fund based in New York with a focus on private placement investments in microcap companies with market capitalizations under $250 million, through the purchase of various types of securities. www.leaddogcapital.com
Contact Information:
For Media Inquiries:
(801) 921 4228
info@bluecastleproject.com
C/O Blue Castle Holdings Inc.
299 South Main Suite 1300
Salt Lake City, UT 84111