Magma Energy finalizes payment for HS Orka purchase
In a release, Magma Energy Corp. advises that its subsidiary “Magma Energy Sweden A.B. has provided a payment of approximately ISK 3.08 billion (USD 27 million) to Geysir Green Energy ehf (“GGE”) to fund the final payment owing under the share purchase agreement between Magma Sweden and GGE pursuant to which Magma Sweden acquired its 98.53% interest in HS Orka hf.
Magma has arranged a short term loan to provide funding for this payment which loan is secured by a Letter of Credit posted by Magma Energy Corp. The Letter of Credit is secured by cash on deposit in Magma’s bank account.”
Source: Company release