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Magma Energy finalizes payment for HS Orka purchase

Reykjanes geothermal power plant of HS Orka, Iceland (source: flickr/ ThinkGeoEnergy, creative commons)
Alexander Richter 10 Dec 2010

Magma Energy Sweden, subsidiary of Canadian Magma Energy Corp. advises it has provided the final payment of US$27m to Geysir Green Energy for the purchase of its 98.53% stake in Icelandic geothermal power company HS Orka.

In a release, Magma Energy Corp. advises that its subsidiary “Magma Energy Sweden A.B. has provided a payment of approximately ISK 3.08 billion (USD 27 million) to Geysir Green Energy ehf (“GGE”) to fund the final payment owing under the share purchase agreement between Magma Sweden and GGE pursuant to which Magma Sweden acquired its 98.53% interest in HS Orka hf.

Magma has arranged a short term loan to provide funding for this payment which loan is secured by a Letter of Credit posted by Magma Energy Corp. The Letter of Credit is secured by cash on deposit in Magma’s bank account.”

Source: Company release