Synex International Inc. plans to issue 3,700,000 common shares in a private placement to Nilock Capital Corp. at 45 Canadian cents per share for gross proceeds of about C$1.7 million.

The British Columbia hydroelectric developer said it will use the proceeds for developing the 4.3-MW Newcastle Creek Hydroelectric Project and the 5-MW McKelvie Creek Hydro as well as for general corporate purposes, including working capital.

As part of the private placement, Arthur Irving Jr., who owns a controlling stake in Nilock Capital, will become a director on Synex's board.

Synex owns or has proportionate interests in 12 MW of operating facilities and 9.3 MW of construction-ready facilities awaiting electricity purchase agreements from BC Hydro and Power Authority. Additionally, the company said it has applications for water licenses and land tenure on 24 potential hydroelectric sites totaling over 150 MW of installed capacity.