Alaska Hydro (TSX: V. AKH, OTCQB: ALKHF , Forum) is the latest company to include its private placement on Stockhouse’s DealRoom. There are very few opportunities for investors to participate in early-stage hydro electricity projects, and Alaska Hydro’s More Creek project offers a significantly lower risk alternative to mineral exploration projects, where the costs of locating and determining the existence of a mineral resource can be in the hundreds of millions of dollars and there can be more regulatory and operational barriers to get into production. Because hydro electricity utilizes a known and completely renewable resource, once commissioned, the project will deliver returns that will be backed by long term power purchase agreements. Alaska Hydro conservatively anticipates an Internal Rate of Return (IRR) of 16.5% and an NPV of $51 million at a 10% DCF
The project will follow the successful business model that was used by Coast Mountain Power Corp. in advancing the Forrest Kerr Hydro Facility. When VTEC (a CPC) was formed the company issued "founder shares", at a price, of $0.075. VTEC acquired Coast Mountain via an RTO, on May 21, 2001. The IPO shares were sold at $0.15, and the offering closed on December, 13, 2000. Upon its takeover of Coast Mountain, Nova Gold offered 0.1245 Nova Gold shares for each Coast Mountain share giving an imputed value to the Coast Mountain shares of $2.20 as of the announcement date of May 26, 2006.
More Creek Project
Capitalizing on increasing electricity demand, Alaska Hydro will construct a 75MW hydroelectric storage dam and generating plant on More Creek in NW BC. The project will generate 346Gwh of electricity annually and will be able to deliver the power to BC Hydro’s substation at Bab Quinn Lake on Highway 37.

The dam facility will be able to provide BC Hydro with added power at peak load times while adding capacity, reliability and stability to BC Hydro’s Northern Transmission Line. Moreover, it will supply additional power to meet growing demand for energy in NW BC.
Alaska Hydro is currently in the permitting stage. The company received the Canadian Environmental Assessment Agency's (“CEAA”) Environmental Impact Statement (“EIS”) Guidelines and plans to proceed immediately with the preparation of the Environmental Impact Statement in accordance with the Guidelines. In addition to the More Creek Project the Company is looking at future expansion with the diversion of Forrest Kerr Creek into More Creek. This project has the potential to add 104 GWH of additional energy and generate and additional $10.4 million revenue.
PRIVATE PLACEMENT OFFERING
JANUARY 2017
Terms of the Offering
Private Placement offering of up to 2,500,000 Flow Through common shares at a price of $0.10 per share for gross proceeds of up to $250,000.
The proceeds received by the Company from the sale of the Flow Through Shares will be used to incur Canadian Renewable and Conservation Expenses which will be renounced to the subscribers in the aggregate amount of not less than the total amount of the gross proceeds raised from the issue of Flow Through Shares. All securities issued under the Offering will be subject to a four-month hold period.
Alaska Hydro’s Financial Highlights
Alaska Hydro is currently listed in Canada under the following ticker: Canada TSX-V: AKH Common Shares Issued and Outstanding: 41,070,853 of which 5,868,600 are owned by the Company and have not been cancelled.
WHY INVEST?
Early stage pricing – this financing allows investors to participate at very low share price. At production, this hydro-electric producer would use all revenue for site maintenance, debt servicing, and dividend payments.
Low Risk – known supply of long term renewable resource assuring high returns over a medium to long term investment period.
Tax benefits – Flow through financing allows investors to write off the purchase of shares against income.
Peak Capacity – The More Creek project can store water and deliver power in peak demand periods at higher prices. Most recent hydroelectric projects have been run of river projects with the result being energy is produced continuously including periods of lower demand thus resulting in lower prices. The proposed dam on the More Creek will create a 25km reservoir that will eliminate any concerns of water supply and will permit the Company to deliver higher priced power required at peak periods.
Green Energy – Hydro electric energy is considered green as it does not produce CO2. Coal-fired and gas-fired electricity generators produce green house gases and as a result are coming under severe regulation. Some producers incur huge costs to comply or be shut down. There is or will be a carbon tax added to production cost of carbon-based electricity producers which will increase operating costs and reduce their competitiveness in the market.
Carbon Offsets – Green energy producers create carbon credits that can be sold or used in cap and trade with projects that generate high volumes of CO2 to generate additional revenue.
Low and Reliable Input Costs – Hydro projects do not have volatile input costs. Carbon based generators are subject to the vagaries of commodity markets which create significant long-term operating cost risk.
Projects are bricks and mortar - The project is basically a hard asset with a long life and which will have well defined capital and operating costs.
Long Production Life - Hydropower plants have a life span between 50 to 100 years with low operational and maintenance costs.
Access to Financing – Other projects that rely on carbon based fuels cannot sign long-term fixed sales contracts and as a result cannot provide security for long-term project financing. The Alaska Hydro contracts will typically be in the 30 – 40 year range. Gas fields do not last this long.
Download
Alaska Hydro’s Corporate Presentation
Alaska Hydro’s Private Placement Subscription Agreement
Contact
Cliff Grandison, Interim President and Chief Executive Officer
+1 (604) 929-4996
cgrandison@telus.net
www.alaskahydro.com
