G4G Resources enters geothermal exploration contracts in Argentina

Alexander Richter 17 Feb 2010

In a release, “G4G Resources Ltd. announces that it has entered into an exploration contract with option to purchase (the “Agreement”) with Grupo Minero Aconcagua S.A. (“Aconcagua”), a private company registered in Argentina and Andean Geothermal Power Corporation (“Andean”), a private company registered in Texas, United States of America. Under the terms of the Agreement, G4G has the option to acquire properties in three separate geothermal areas in Argentina (the “Properties”). In addition, G4G is pleased to announce that it intends to change the name of the company to more effectively reflect the nature of the business with which it is involved. Subject to TSX Venture Exchange and Shareholder approval, G4G will become Americas Geothermal Inc., under the symbol TSX-V: GXG.

The Properties are located in the mining-friendly Provinces of Jujuy, Salta and San Juan, and collectively encompass 45,390 hectares. All properties are in close proximity to roads and/or power lines. A number of properties are also close to current mining operations using diesel generation and potential mining operations which will require power in the future.

“In addition to the acquisition of the rights to the Anetta geothermal property in Salta Province, the newly acquired rights to the Valle del Cura, Tuzgle and Tocomar geothermal properties will add a great deal of value to G4G shareholders,” stated Basil Botha, President and CEO of G4G Resources Ltd. “The Valle del Cura property includes the Despoblados property, which is approximately 8 kilometres from Barrick Gold Corporation’s Veladero Mine and 20 kilometres from the proposed Pasqua-Lama Mine. Another exciting aspect is that the Tuzgle property is in close proximity to the power grid. Tuzgle is also close to current and potential lithium operations, which require large amounts of power to process lithium and potash.”

G4G will develop the Despoblados property under a joint venture with Energia Provincial Sociedad del Estado (“EPSE”), which is the state-owned electrical utility of the province of San Juan. Despoblados covers approximately 3,600 hectares, which is 18% of Valle del Cura, which totals 20,088 hectares. Under the joint venture agreement with EPSE, G4G will acquire 90% of the emerging rights of the Despoblados project and EPSE will retain 10%. The Agreement with Aconcagua and Andean assigns to G4G the rights to earn 100% of the remaining 82% of Valle del Cura, as well as 100% of Tuzgle and 100% of Tocomar.”

For the full release see link below.

Source: company announcement via Marketwatch