VANCOUVER, Jan. 29, 2013 /PRNewswire/ - Nevada Geothermal Power Inc. (the "Company") (TSX.V: NGP) is pleased to announce that it will implement a reorganization plan that was approved earlier by shareholders at the Annual and Special General Meeting on July 24, 2012. In addition, the Company will explore opportunities for asset sales, project development, acquisitions and potential mergers.
It is proposed that the Company name will be changed to "Alternative Earth Resources Inc." upon completion of the reorganization plan, and there will be approximately 24,482,000 shares outstanding following a 1 for 5 reverse split of the stock. Completion of the reorganization is subject to the acceptance of the TSX Venture Exchange.
On closing of the Blue Mountain equity transfer agreement as announced January 16, 2013, the Company will have ownership interests in four geothermal development properties in the western US (Crump Geyser, New Truckhaven, Pumpernickel and North Valley) and no long-term liabilities. The Company will not have an ownership interest in the Blue Mountain project, however it will operate the Blue Mountain geothermal power plant through a transition period up to 12 months. The Company expects to have sufficient cash and income to cover project costs, lease payments, staffing and corporate overhead beyond the end of the transition period.
The Company will seek buyers and/or joint venture partners for its advanced-stage geothermal projects. New tax legislation passed by the US Senate and Congress in early January, 2013 should provide significant Production Tax Credit ("PTC") and Investment Tax Credit ("ITC") incentives for prospective partners. Under old rules, qualifying renewable energy projects needed to have started construction in 2012 with an additional requirement to be "placed in service" by January 1, 2014. The fixed completion date requirement caused several projects that were underway, like the Company's Crump project with Ormat, to drop out after having started construction. Under new rules, geothermal projects will be eligible for the PTC or a 30% ITC on certain project costs if project construction commences before January 1, 2014. Significantly, there is no preset date for a project to be placed in service once construction starts, which helps reduce project financing risk. Project sponsors or financing partners must choose between the PTC, currently valued at $22/MWh and applied with an inflation index through the first ten years of production, or the 30% ITC. The Company has completed planning under which its Crump Geyser, New Truckhaven and Pumpernickel projects can be ready for development drilling or start of construction in 2013.
Brian Fairbank, President & CEO said "the Company looks forward to new challenges and opportunities armed with valuable project development and operating experience."
About Nevada Geothermal Power Inc.:
Nevada Geothermal Power Inc. is an experienced renewable energy producer focusing on the development of CLEAN electrical power from high temperature geothermal resources in the United States. NGP currently owns a 100% leasehold interest in several properties in Nevada and California, and a 50% interest in Crump Geyser, in Oregon. These properties are at different levels of exploration and development.
This Press Release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We have tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "expects," "plans," "intends," "potential" and similar expressions. These statements reflect our current belief and are based upon currently available information. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. We undertake no obligation to update or advise in the event of any change, addition, or alteration to the information catered in this Press Release including such forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Nevada Geothermal Power Inc.
Brian D. Fairbank, P. Eng. President & CEO
Toll Free: 866-688-0808
Toll Free: 866-688-0808
SOURCE Nevada Geothermal Power Inc.