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.