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Mining firm acquires Mita geothermal project in Guatemala

Pacaya and Agua volcanoes as seen from Guatemala City (source: Commons/ wikimedia, Sir James)
Alexander Richter Alexander Richter 6 Mar 2017

The potentially 50 MW Mita geothermal project in Guatemala is changing owners, with buyer Bluestone Resources currently raising the necessary funds to close the acquisition.

As part of an announcement on fundraising, Canadian Bluestone Resources Inc. reports wanting to use proceeds of a private placement offering for the acquisition of the Cerro Blanco gold project and the Mita geothermal project from Goldcorp Inc. The rights issue is valued of up to $80 million (Canadian dollar)

The company announced the acquisition of both projects in Guatemala in January this year.

In the release on the planned acquisition in January 2017, the company estimated that “approximately US$60 million has been invested exploring and advancing the Mita Geothermal project near Cerro Blanco, including the drilling of four production wells.

Third party studies contemplate production capacity from these wells alone of approximately 7 MW. While more test work is required on the geothermal resource, these studies suggest there may be sufficient pressure and entropy at exploitable levels to support the fully licenced capacity of 50 MW. Bluestone is evaluating various options to monetize the geothermal assets.”

 

The question is if the company will actually develop the project or look for a buyer.

Source: Junior Mining Network, Marketwired