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Boralex buying Northland Power's stake in Quebec wind farm for $11.5 million

The Canadian Press

MONTREAL - Boralex Inc. is acquiring a majority stake in a wind power project in Frampton, Que., from Northland Power Inc. for $11.5 million.

The remaining one-third stake is owned by the municipality of Frampton in southern Quebec.

Construction of the 12 wind turbines will begin in the first quarter and be completed within 12 months at a cost of $75 million to $80 million.

Energy from the 24-megawatt operation will be sold to Hydro-Quebec.

Northland Power (TSX:NPI) said the sale will enable the Toronto-based company to realize returns at an earlier stage and focus on other large scale development and construction projects.

Northland owns or has an interest in 1,345 MW of operating capacity in Canada and Europe, including offshore North Sea wind projects near the Netherlands and Germany.

Boralex generates more than 940 MW of energy from wind, hydroelectric, thermal and solar in Canada, France and the United States. It plans to add more than 100 MW of power by the end of 2015.

Meanwhile, Boralex also announced Monday the closing of its equity offering for about $110 million in gross proceeds, or up to $126.5 million if the over-allotment option is exercised by the underwriters.