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Caldera Geothermal undertakes US$4.8m private placement

Caldera Geothermal undertakes US$4.8m private placement Snapshot of Caldera Geothermal website.
Alexander Richter 26 Jul 2010

Caldera Geothermal Inc. announces private placement for up to US$4.8million with proceeds to be used to advance a portfolio of 8 geothermal development projects in Nevada/ United States.

In a release by Capricorn Business Acquisitions Inc. (“Capricorn”) , a capital pool company, the company announces that Caldera Geothermal Inc (“Caldera”) … intends to complete a best-efforts brokered private placement (the “Offering”) for up to $5 Million (US$4.8million), on a subscription receipts basis. The Offering consists of up to 14,285,715 units (“Units”) at a price of $0.35 per Unit with each Unit consisting of one common share of Caldera and one half of one warrant, each whole warrant exercisable into one common share of Caldera at $0.45 for a period of two years from the date of issuance. Capricorn and Caldera have signed a binding letter of intent to complete a Qualifying Transaction as disclosed in a press release dated April 8, 2010.

A syndicate of investment dealers and exempt market dealers (collectively, the “Agents”) led by Versant Partners Inc. and including Canaccord Genuity Corp., Wellington West Capital Markets Inc., and Foundation Markets Inc., will place the Offering. The Agents will be paid a cash commission equal to 7.0% of the gross proceeds of the Offering, and in addition, the Agents will receive broker warrants in the amount equal to 7.0% of the number of Units issued in the Offering, each such broker warrant exercisable into one common share of Caldera at a price of $0.35 per common share for a period of two years from the date of issuance.

Proceeds from the Offering will be held in trust and released to Caldera only upon the closing of the Qualifying Transaction, and will be used to advance the Company’s portfolio of 8 development projects consisting of 26,247 acres of geothermal leases in Nevada, including the McGee Mountain and Teels Marsh properties, for the acquisition of additional geothermal properties at BLM auctions or through private transactions, and for general corporate purposes.

Post Transaction: Assuming the Offering is fully subscribed, immediately prior to the closing of the Qualifying Transaction, Caldera will have 47,264,173 common shares, 20,521,040 warrants, 3,092,840 options and 2,578,862 compensation options outstanding post-transaction. On a fully diluted basis, Caldera will have 74,315,405 common shares outstanding post-transaction.

Caldera Geothermal is a geothermal exploration and development company focused on the Great Basin region of the Western United States. Caldera uses innovative exploration tools developed at the Great Basin Center for Geothermal Energy, University of Nevada, Reno, which reduce the time, cost and risk of up front geothermal exploration, enabling Caldera to be a leader in the identification and discovery of new geothermal resources. Caldera owns 26,247 acres of geothermal land leases in the State of Nevada. Leading geothermal consultant GeothermEX, Inc. estimates (90% Probable, “P90″) that the Company’s McGee Mountain and Teels Marsh projects have a generation potential of 46MW.”

Source: Company release via MarketWatch