EDC to acquire majority of Chilean & Peruvian assets from Hot Rock Ltd

Survey work at the Quellaapacheta project, Peru (source: Hot Rock Peru via flickr/ Geothermal Resources Council, creative commons)

Francisco Rojas 18 Nov 2013

In a disclosure to the Philippine Stock Exchange, Energy Development Corporation (EDC) reported that its wholly-owned subsidiary EDC Hong Kong Ltd signed a share sale agreement with Hot Rock Holding Ltd (HRH). As part of the agreement EDC HK shall acquire all of HRH’s shares in Hot Rock Peru Ltd (HRP) and Hot Rock Chile Ltd (HRC) and thereby the concessions of the company in those countries.

“The [agreement] shall ultimately transfer selected geothermal concessions and authorizations held by HRP and HRC’s affiliates in Chile and Peru to EDC, including its remaining stake in the Quellaapacheta project. Completion of the sale shall be subject to the fulfillment of several conditions,” the Philippine listed firm said.

Australian geothermal development company Hot Rock Ltd. through Hot Rock Holding holds 23 geothermal tenements across Chile, Peru and Australia.

Hot Rock, in separate statement, said both parties have agreed to a sale price of $3 million. A deposit of $500,000 of the purchase price is payable by EDC within five business days of execution of the contract.

EDC will acquire all of the geothermal authorization and application interests (including Hot Rock’s 30% interest in the Quellaapacheta joint venture oroject) and other assets held by Hot Rock Peru S.A in Peru except for the Chocopata Project; and all of the geothermal concession and application interests and other assets held by Hot Rock Chile S.A and Hemisferio Sur SpA, in Chile except for the Longavi and Calerias Projects.

Early last year, EDC inked an agreement with HRH that gave the former control over the joint venture’s geothermal projects in South America.

Source: Euan Paulo C. Añonuevo via Interaksyon Website, ABS-CBN News