Alterra Power and EDC Finalize Joint Venture for Geothermal Assets in Chile and Peru
TSX : AXY
VANCOUVER, June 20, 2013 /PRNewswire/ - Alterra Power Corp. (TSX: AXY) is pleased to announce that Energy Development Corporation (EDC) has issued notice to proceed for the development of Alterra's Mariposa geothermal project in Chile and the Crucero, Loriscota, and Tutupaca Norte concessions in Peru. Definitive shareholders agreements have been executed by the parties, and due diligence has been completed. The JV terms call for EDC to earn a 70% interest by funding 100% of the next $58.3 million in project expenditures at Mariposa, and $8.0 million in project expenditures at the Peruvian concessions. Under the agreed work plan at Mariposa, the JV will further develop infrastructure over the next 18 months, including new roads and drill pads, and production-scale drilling will commence in late 2014. Next activities at the Peruvian concessions will include advanced exploration activities designed to identify the best locations for power plant development and construction. John Carson, Alterra's CEO said "We're pleased to be partnering with EDC, who brings significant new capital and expertise to these assets. We expect the Mariposa project to be the flagship geothermal power production area in Chile, which continues to have a strong need for power."
About Alterra's Mariposa and Peruvian Geothermal Assets
The Mariposa geothermal power project is located approximately 300 kilometers south of Santiago, Chile. It is comprised of the Laguna del Maule and Pellado concessions, which total 104,000 hectares and completely encompass a geothermal system that has an inferred estimate of 320 megawatts. Alterra has conducted extensive exploration and infrastructure work at Mariposa, including three slim-hole wells and a 26-kilometer access road. Alterra also has early-stage geothermal projects in the southern volcanic belt of Peru. Initial indications and Alterra's exploration activities to date have supported the presence of large geothermal resources.
About Energy Development Corporation (EDC)
EDC is a Philippines-based global leader in the geothermal energy industry that has been developing and operating power plants since 1977. The company's operating portfolio of 11 geothermal power plants and two hydro facilities totals 1,262 megawatts of capacity and produced over 3,600 gigawatt-hours in the first half of 2012. EDC has been actively expanding its project portfolio to Indonesia, Peru and Chile.
About Alterra Power Corp.
Alterra Power Corp. is a leading global renewable energy company. Alterra operates six power plants totaling 566 MW of capacity, including two geothermal facilities in Iceland, a geothermal plant in Nevada, British Columbia's largest run-of-river hydro facility and the province's largest wind farm. The company's 297 MW share of production capacity generates approximately 1,400 GWh of clean power annually. Alterra also has an extensive portfolio of exploration and development projects, a skilled international team of developers, explorers, builders and operators to support its growth plans.
The company trades on the Toronto Stock Exchange under the symbol AXY and OTC in the United States as MGMXF.
Cautionary Note regarding Forward-Looking Statements and Information
This news release contains certain "forward-looking information" within the meaning of Canadian securities laws, which may include, but is not limited to, statements with respect to future events or future performance, the fulfillment of all conditions precedent to the obligation of the parties under the agreements, required consents and third party approvals. This news release also contains statements with respect to our plans to expand our operations, management's expectations regarding our growth, business prospects and opportunities and energy generation capacities. Such forward-looking information reflects management's current beliefs and is based on information currently available to management.
SOURCE Alterra Power Corp.