Alterra Power and EDC partner on Chile and Peru projects

Mariposa Drilling Site, Chile (source: Magma Energy)
Alexander Richter 17 Oct 2012

Alterra Power Corp. is joined by Energy Development Corp in the development of Alterra's Mariposa geothermal project in Chile and five of Alterra's Peruvian geothermal concessions, allowing EDC to earn an interest of up to 70% in those projects.

In an announcement, Canadian listed Alterra Power Corp. (TSX: AXY) announces that 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.

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.”

Source: Company release via Stockhouse