Eurasian Minerals sells geothermal assets in Slovakia and Peru
Al fondo el Coropuna, Peru (source: flickr/ carlosz, creative commons)
Alexander Richter
7 Aug 2013
Mining firm Eurasian Minerals announces it has sold its geothermal energy assets in Slovakia and Peru to Starlight Geothermal.
Listed mining company Eurasion Minerals (“EMX”) announced today that it has “sold its geothermal energy assets in Slovakia and Peru to Starlight Geothermal Ltd. (“SGL”) for cash payments, an equity position in SGL, and gross royalties from future geothermal energy production.
EMX initiated its geothermal program in 2010 to leverage the synergies that exist between geologic environments favorable for mineral exploration and those prospective for geothermal power development. The sale of the geothermal portfolio is an example of EMX’s execution of the prospect generation business model resulting in further organic royalty property growth for the Company.
EMX’s geothermal energy program focused on the acquisition and advancement of early-stage opportunities with high geologic potential, and in markets with a favorable regulatory and business environment. The program was led by industry expert James Koenig, the founder and President of GeothermEx, Inc. (1973-1995), and a past Director of both the Geothermal Resources Council and the International Geothermal Association. Mr. Koenig’s guidance, coupled with the Company’s operational expertise in regions around the world, provided EMX with unique commercial opportunities and competitive advantages in establishing its portfolio of geothermal properties.
EMX’s initial acquisitions were in two of Slovakia’s most promising regions for geothermal power generation, which include the Ziar Basin of west-central Slovakia and the Pannonian Basin in the southeastern corner of the country. The Company’s geothermal portfolio in Slovakia totaled five licenses covering approximately 320 square kilometers. Slovakia’s proactive stance towards geothermal and renewable energy projects provides strong incentives for developing the geothermal resource potential covered by these licenses.
EMX also assessed opportunities in Latin America that led to the acquisition of four geothermal licenses totaling 328 square kilometers in Peru, including the Tambochaca, Pumahuiri, Sengata, and Coropuna projects. These licenses occur in prospective regions of Peru’s Western and Eastern Cordillera that include geologically recent volcanism and occurrences of thermal springs and fumaroles. Peru has recently taken significant steps towards developing “renewable energy” resources that create a favorable business climate for both domestic and foreign investors.
EMX’s geothermal assets in Slovakia and Peru were sold to Starlight for an upfront cash payment, an equity position consisting of approximately 5% of SGL’s issued and outstanding shares, annual advance minimum royalty payments until production commences, and once production commences a 1% gross royalty on its geothermal licenses in Slovakia and a 0.5% gross royalty on its geothermal licenses in Peru. Starlight Geothermal Ltd. is a Delaware registered private company that is focused on the advancement of geothermal energy resources worldwide.”
Source: Company release via Marketwire
