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."
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.
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