Toronto-based Newlook Industries Corp. has entered into a letter of intent to acquire 90 per cent of Sunbay Energy North Corp., the project developer of a biomass renewable energy project in Chapleau.
The remaining 10 per cent of the ownership is held by M&L Waste Management Inc., a Chapleau-based waste haulage firm.
The project would involve rail ties and forestry slash in a high-temperature, non-combustion thermal gasification process to transform them into synthetic gas and ash.
Sunbay Energy is a subsidiary of PowerPlay, which also oversees a similar project in Port Hope through another subsidiary, Sunbay Port Hope Inc. Having already invested roughly $250,000 as secured debt in this other project, Newlook will cancel the loan and forgive any indebtedness as consideration for the 90 per cent acquisition of Sunbay North.
The transaction is expected to close by April 15, 2009, subject to regulatory approvals.
