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EDC and Alterra execute JV agreement for Chilean and Peru projects

Mariposa Drilling Site, Chile (source: Magma Energy)
Alexander Richter 19 Jun 2013

Philippine based Energy Development Corporation (EDC) and Canadian developer Alterra Power and their relevant subsidiaries have executed necessary contracts for their joint venture agreement for the Mariposa geothermal project in Chile and three projects in Peru.

In a disclosure yesterday, “Philippine based Energy Development Corporation (EDC) and Canadian developer Alterra Power and their relevant subsidiaries have executed four Shareholders’ Agreements and other related agreements… all with effect on 17 June 2013 for the implementation of the terms of the JVA (joint venture agreement).”

Last May 20, the two companies executed a joint venture agreement for the exploration and development of the Mariposa geothermal power project in Chile and three projects in Peru, identified as Tutupaca Norte, Loriscota and Crucero. EDC further said that under the shareholders’ agreement for the Mariposa project, its wholly owned subsidiary in Chile will acquire a 70% interest in Compañia De Energia (ENERCO), a subsidiary of Alterra who owns the Mariposa project.

“Alterra will continue to hold a 30% interest in ENERCO through its wholly owned subsidiary Magma Energy Chile Limitada, subject to the terms of the Shareholders’ Agreement for the Mariposa Project,” the company noted.

On the other hand, the terms of each shareholders’ agreements for the projects in Peru provide that a new company will be incorporated for each project, which will be responsible for developing the geothermal assets. The company said that each Peruvian project will be owned by EDC’s wholly owned unit in Peru and “30% owned by Magma Energia Geotermica Peru S.A.,” which is another wholly owned subsidiary of Alterra.

“EDC’s continued participation in the Peruvian Projects and the Mariposa Project is subject to EDC’s resource assessment of each of the projects in accordance with the terms of the Project Agreements,” the Lopez-led company said. In October last year, EDC signed an agreement with Alterra to allow the Lopez-led company to conduct exploration field works and due diligence at Alterra Power’s geothermal concession in Chile and geothermal authorizations in Peru.

The agreement gave EDC an “option to advance the projects to joint venture stage.”

Source: BW Online