Caldera Geothermal receives loan from Capricorn of $225,000

In an announcement by Capricorn Business Acquisitions Inc. (TSX VENTURE: CAK.P), a capital pool company which entered into a previously announced letter agreement (the “Agreement”) with Caldera Geothermal Inc. to acquire all of the issued and outstanding securities of Caldera, says that, further to its press release dated December 9, 2010 and receipt of approval from the TSX Venture Exchange, it has disbursed a secured interest bearing loan in the principal amount of $225,000 to Caldera.

The loan bears simple interest at the rate equal to 8% per annum which principal and accrued and unpaid interest are fully repayable on the earlier of (i) June 30, 2011, (ii) the completion of the Qualifying Transaction and (iii) the occurrence and continuance of an event of default. The loan is secured by a first charge against the shares of Geothermal Technical Partners Inc., Caldera’s wholly owned operating subsidiary (which holds all of Caldera’s geothermal assets), and on certain other assets of Caldera.

The Parties also agreed to further amend the Agreement to, among other things, provide for a further extension of the exclusivity period from March 31, 2011 to June 30, 2011 and to authorize Caldera to undertake an unsecured convertible debenture financing in the aggregate principal amount of up to $1,000,000.

Caldera intends to utilize the proceeds from the Capricorn loan and the debenture financing for, among other things, land payments associated with current properties of Caldera and new acquisitions made in the recent Nevada geothermal lease auction, costs associated with the Qualifying Transaction and general corporate and administrative purposes.”

Source: Company release via  #mce_temp_url#