Subject to the outcome of the assessment under the deal, the Sliammon First Nation has agreed to support the Canadian independent generating company's construction and operation of the 196MW run-of-river project.
Terms of the agreement include recognition and respect of the native people's title and rights, archeological sites and artifacts, and traditional uses of the area. The agreement also includes opportunities for jobs, training and business.
Last August, Plutonic agreed an exclusive deal with a local affiliate of GE Energy Financial Services which would bring C$100M (US$85.6M) of equity and C$400M (US$342.3M) of debt finance for the project.
In return, GE will receive a 49% equity stake in the project to be built 190km northwest of Vancouver, plus a 60% economic interest over 35 years and thereafter stepping down to 49%. A separate GE affiliate has provided credit support for the project, in return for which share purchase warrants have been issued.
Plutonic has plans for 22 run-of-river projects in south west British Columbia with a total installed capacity of more than 1100MW, and which would have the potential to generate about 3500GWh annually.
Under the East Toba River/ Montrose Creek deal, GE also the right to match an equity offer Plutonic receives for its planned second hydro project, Rainy River, which would have a capacity of 15MW.
The two projects have an estimated total cost of C$500M (US$427.9M) and have the potential to deliver annual revenues of C$60m-C$70M (US$51.3M-59.9M) to Plutonic, it said in a statement.
Last July, Plutonic was offered two energy purchase agreements for both hydro projects from state utility BC Hydro, which call for the supply of about 752GWh annually over 35 years.
