Australian Fall River Resources now with 8 geothermal exploration licenses
Sydney-based oil and gas investor Fall River Resources has expanded its reach within South Australia's geothermal belt with eight exploration licenses.
Reported from Australia, “Sydney-based oil and gas investor Fall River Resources has expanded its reach within South Australia’s geothermal belt with eight exploration licenses.”
“Fall River Resources Ltd has added five new South Australian geothermal exploration licenses through the acquisition of all the issued share capital in Earth Heat Limited. Fall River says the deal, which was completed on January 22, 2010, boosts the value of the company well beyond the price it paid.
“When the independent expert made their report and valuation, the five licenses were only applications to which no value was ascribed”, the company said. “Given that Earth Heat’s three pre-existing GELs [geothermal exploration licenses] in the same region were independently valued at between $4.2 and $5.1 million, as part of the transaction, these additional GELs imply a significant boost in the value of the Company’s geothermal assets.”
The proposal put to the Fall River AGM on January 8, assigned Earth Heat shareholders 260 million fully paid shares of a cent ($260,000) in Fall River in exchange for ownership of Earth Heat.
Fall River now has eight GELs, all of them held through Earth Heat, and all in the defined South Australian heat flow anomaly in the Adelaide Plains north of the State’s capital.
With the completion of the deal, Dr Raymond Shaw has agreed to become non-executive Chairman of Fall River following the appointment of Mr Torey Marshall and himself as directors and the resignations of Messrs Bruce McLeod and Jack Mulready.”
Source: Business Spectator