News

Hot Rock to sell remaining stake in Peru project to EDC

Survey work at the Quellaapacheta project, Peru (source: Hot Rock Peru via flickr/ Geothermal Resources Council, creative commons)
Alexander Richter 15 Oct 2013

Hot Rock Ltd to sell its remaining 30% stake in the Quellaapacheta concession to JV partner EDC with other remaining Chilean and Peruvian assets possibly being included in the sale.

As part of a larger strategic review on the company and its geothermal activities, Australian Hot Rock Ltd. reports now that it “has signed a binding letter of offer (LOO) for the potential sale of the Company’s stake in the Quellaapacheta project and for some or all of HRL’s remaining Chilean and Peruvian assets along with drill casing owned by HRL. Any sale which may arise will be subject to amongst other things, satisfactory completion of due diligence by EDC and approval of HRL shareholders if required.

EDC and HRL have under the potential offer terms entered a period of exclusivity with a view to negotiating the final terms of a sale agreement in the near term, acceptable to both parties and consistent with the LOO.

The sale of the 125 square kilometre Quellaapacheta concession is subject to a complete due diligence process by EDC and approval of HRL shareholders.

Hot Rock holds the Achumani and Huisco projects in Peru as well as the Longavi and Copahue projects in Chile. Some or all these assets may be included in the sale.

Source: Proactive Investors, Hot Rock Ltd. release (pdf)