Geothermal Resources (GHT) offered full take-over by Havilah Resources

Frome 1, Drill Site, Geothermal Resources, Australia (source: company)
Alexander Richter 23 Aug 2011

Australian geothermal developer Geothermal Resources (ASX: GHT) has been approached by Havilah Resources that could lead to a full take-over by Havilah of the company. Currently Havilah holds about 41% of the company's issued shares.

Reported yesterday, that trading was halted for Havilah Resources, it was announced this morning that “Geothermal Resources (ASX: GHT) has been approached by Havilah Resources (ASX: HAV) to engage in talks which may lead to a firm proposal by Havilah to acquire all the ordinary shares in the company.

Havilah currently holds about 41.32% of Geothermal’s issued shares and could potentially offer consideration of one Havilah share for every four Geothermal shares.

To ensure the independence of the board members in respect of Havilah’s approach, experienced mining finance executive Martin Janes has been appointed as an independent non?executive director of the company.

An announcement will be made by the board once it has formed a view on the matters raised by Havilah.

Geothermal operates two 100% owned geothermal projects in South Australia that are well located with respect to power grids and potential markets for electricity.

The Frome project, 150 kilometres west of Broken Hill has an estimated Inferred Resource of 84,000 PJ, based on temperature measurements in eight drillholes (two to about 1800 metres deep).

A seismic survey has confirmed the site for proof of concept wells to be drilled into the fractured granitic heat source.

The Penola-Robe project, in the South East of SA adjoining Panax tenements, has similar hot sedimentary aquifer geothermal potential. There are proven high geothermal gradients and hot water bores at Robe within the tenement area.

The company’s share price spiked 300% between 8-14 July following the Federal Government’s carbon pricing and clean energy support initiatives announced on July 10. Geothermal energy, literally energy obtained from hot areas under the earth’s surface, is one of the areas where Australia has a high level of technical skill.

Geothermal energy from South Australia’s Cooper Basin, by some calculations, is capable of providing a significant percentage of the energy requirements of the eastern states.
Geothermal Resources shares rose 41.3% to $0.13 in intraday trading.”

Source: Proactive Investors