Planned natural gas-fired power plant may be sold

Argan Inc. (NYSE: AGX) announced that its subsidiary, Gemma Power Systems (GPS), entered into a Consent and Intercreditor Agreement in connection with the construction and design of an 825 MW natural gas-fired power plant in Pennsylvania.

GPS has advanced approximately $3.6 million in working capital to Moxie Liberty LLC. On March 28, 2013, Moxie entered into a Membership Interests Purchase Agreement with a third party investor who will provide advances of certain preconstruction costs. The purchase of Moxie will be completed once the third party investor secures permanent financing for the project.

Should the third party investor consummate the Moxie purchase, GPS would build and design the power plant under an EPC agreement and would receive development success fees and repayment of the working capital advances plus accrued interest from the proceeds of the sale of Moxie.

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