EDC initiates field work program on Quellaapacheta project in Peru
Energy Development Corp. is preparing its work program for geological, geochemical and geophysical survey work at the Quellaapacheta project in Peru, under its joint venture agreement with Australian Hot Rock Ltd.
Australian developer Hot Rock Ltd reports that its partner Energy Development Corporation (EDC), “is mobilising its personnel and contractors to start field work programs at the Quellaapacheta project.
Its personnel and geological, geochemical and geophysical magneto-telluric survey contractors are expected to start work on 22 September with completion expected by mid-November 2012.
Under the Quellaapacheta agreement, Hot Rock will receive an initial cash payment of US$0.4 million from EDC, a rough A$2.5 billion market cap., after the exploration tenement is transferred into a newly incorporated joint venture company, which will take about two to three months.
A further payment of US$0.6 million will be paid to Hot Rock if EDC continues with the project past an initial 15 month period.
EDC is sole funding up to US$12 million for surface exploration and deep exploration drilling activities for the Quellaapacheta geothermal project, located about 120 kilometres north of Tacna.
However, EDC has also decided not to proceed with the joint venture at Chocopata located about 120 kilometres north east of Arequipa and 100 kilometres north west of Puno.
Hot Rock has started joint venture discussions with other parties to explore and develop Chocopata as well as other geothermal projects within its portfolio in Peru, Chile and Australia.”
Source: Company release via Proactive Investors