The three properties include: Sam Black Church Rd. Crawley, (Site 1); Wolf Creek Rd. Fayetteville, (Site 2); and Muddy Creek Rd. Alderson, West Virginia (Site 3).
The Sites 1 and 2 will have 8-10MW in solar electrical production capacity, while Site 3 will have capacity for 15-20MW. The value of the contract is estimated between $124m and $160m.
Under the agreement, Tri-State will be responsible for obtaining financing to complete the three projects, and clearing and preparing each property in preparation for the installation of the solar panels.
Solar Thin Films has agreed to use its expertise to assist Tri-State in the negotiation and execution of power purchase agreements with the local power utility company.
Solar Thin Films is entitled to receive a 20% deposit on each of the projects prior to commencement of installation. It is also entitled to progress bill on a monthly basis to recover its costs and expenses. Any remaining unbilled amounts up to the agreed installation price are to billed and paid upon satisfactory completion of the work.
Solar Thin Films CEO James Solano said, "We a very happy to report the execution of this contract as it brings us one step closer to bringing significant revenues and profits to the company. It showcases some of our abilities as a company in a way that allows us to report revenue and earnings growth, without causing a significant impact on our working capital position."
The installation work is expected to start before the end of 2013 and will be completed within 18 months.
