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Petratherm to raise $1.7 million for Paralana and other projects

Paralana 2 Well Injectivity Test in January 2011 showing some hydraulic pumps (left) and Coil Tubing Unit (right) (source: Petratherm, June 2011)
Alexander Richter Alexander Richter 9 Oct 2013

Australian developer is looking to raise up to $1.7 million for the advancement of its Paralana geothermal project in South Australia.

Reported this morning, Australian developer Petratherm (ASX:PTR) is looking to raise capital of up to AU$1.77 million (US$1.7 million) for the development of its Paralana geothermal project in South Australia. The money to be raised is also to help fund new project acquisition and joint ventures.

The company is looking to raise the money under a partially underwritten rights issue to its shareholders of a new share priced at $0.01 each for every share held. The price offered is a 59% discount to the the closing average price of the Company’s shares during the 14 trading day period up to and including 8 October 2013.

Taylor Collison Limited is underwriting the issue to $600,000.

“Petratherm was awarded a $13 million grant by the Australian Renewable Energy Agency for its Paralana project in June this year, or about half the next stage of project works designed to demonstrate commercial energy extraction.

This involves the drilling and stimulation of the Paralana 3 well – a producer well into the hot rock reservoir created around the existing Paralana 2 well.”

Source: Proactive Investors