TSX : AXY
VANCOUVER, Oct. 16, 2012 /PRNewswire/ - Alterra Power Corp. (TSX: AXY) is pleased to announce it has entered into an agreement with Energy Development Corporation (EDC), a Philippines-based global leader in the geothermal power industry, for the development of Alterra's Mariposa geothermal project in Chile and five of Alterra's Peruvian geothermal concessions (the South American projects).
Under this agreement, EDC will have six months to carry out field work and due diligence on the South American projects in order to elect to advance them into a formal joint venture. If advanced, EDC will be entitled to earn a 70% interest by funding the next $58.3 million in project expenditures at Mariposa, and $8 million in project expenditures on the five Peruvian concessions. Subsequent project equity contributions and all economic sharing will be pro rata between the partners.
John Carson, Alterra's CEO, said, "This transaction represents a significant step forward for our geothermal assets in Chile and Peru. EDC is a strong partner with deep expertise, and we're pleased to be making this next step together."
About Alterra's Mariposa and Peruvian Geothermal Assets
The Mariposa geothermal power project is located in the Andes mountains of Chile and lies approximately 300 kilometres south of Santiago. 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 infrastructural work at Mariposa, including three slim-hole wells and a 26 kilometre access road.
Alterra's early-stage geothermal projects in the southern volcanic belt of Peru include the Loriscota, Crucero and Panejo concessions in the north-eastern trend, and the Sara Sara and Tutupaca Norte concessions in the south-western trend. Initial indications and Alterra's exploration activities to date have supported the potential 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. We operate six power plants totalling 567 MW of capacity, including two geothermal facilities in Iceland, a geothermal plant in Nevada, British Columbia's largest run-of-river hydro facilities and the province's largest wind farm. Our 298 MW share of production capacity generates approximately 1,400 GWh of clean power annually. We have an extensive portfolio of exploration and development projects, a skilled international team of developers, explorers, builders and operators and the financial capacity to support our growth plans.
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 fulfilment 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.