Argentina: G4G Resources to acquire geothermal properties in San Juan
Canadian G4G Resources Ltd. announces that it has signed a Letter of Intent (LOI) to acquire from Geotermia Andina SA a 90% interest in the 3,600 hectare Despoblados geothermal energy project in Argentina.
In a recent statement, Canadian G4G Resources Ltd. (TSX VENTURE:GXG) – Canadian-based mineral exploration and development company – announces that it has signed a Letter of Intent (LOI) to acquire from Geotermia Andina SA a 90% interest in the 3,600 hectare Despoblados geothermal energy project in the San Juan Province of Argentina.
The agreement provides that Energia Provincial Sociedad Del Estado (EPSE), the local provincial utility company of San Juan, will co-joint venture the Los Despoblados property and will retain 10% of the project. Details of the agreement will be forthcoming upon signing of a definitive agreement.
EPSE will assist in achieving the commercialization of electrical energy produced from the hot water systems on the Despoblados properties. EPSE will further assist in attracting mining companies which operate in the district to purchase electrical power which may be generated from the properties. In close to proximity to the Despoblados geothermal properties are Barrick Gold Corporation’s Veladero mine, which is in operation, and the Pascua-Lama project, which is scheduled to be in production by 2012. Veladero and Pascua-Lama are both currently powered primarily by diesel-fired generation and are located approximately 8 kilometres and 28 kilometres from Despoblados, respectively.
Basil Botha, President & CEO, said, “This is an exciting prospect, with the potential to supply electricity from the Despoblados geothermal properties to Barrick’s Veladero and Pascua Lama mines. Together, these two mines will require approximately 150 MW of electricity.”
In addition to geothermal energy in Argentina and iron sands in Central America, G4G is also focused on the production of alternative fuels from municipal waste, through its wholly-owned subsidiary, Alternative Fuels Corporation (AFC). AFC is currently developing a project in Sarnia, Ontario. G4G is actively engaged in acquiring additional projects in the alternative fuels and the geothermal energy arenas.
About G4G Resources: G4G Resources is a Canadian-based mineral exploration and development company focused on a number of resource projects, including iron sands, alternative fuels and geothermal power.”
Source: Company announcement via Marketwire