ThinkGeoEnergy – Geothermal Energy News

Magma Energy now holding a 98.53% stake in Icelandic HS Orka

Magma Energy Sweden AB, a wholly-owned subsidiary of Canada-based geothermal energy company Magma Energy Corp., acquires the remaining 14.32% interest in HS Orka hf from Geysir Green Energy ehf (GGE), holding now a 98.53% interest in HS Orka.

Following the announcement of mid-August 2010, “Magma Energy Sweden AB, a wholly-owned subsidiary of Canada-based geothermal energy company Magma Energy Corp., announces it has acquired the remaining 14.32% interest in HS Orka hf from Geysir Green Energy ehf (GGE). Following this, Magma Sweden now holds a 98.53% interest in HS Orka.

In today’s transaction, Magma Sweden acquired 14.32% of HS Orka’s outstanding shares from Geysir Green Energy ehf by assuming a bond with the municipality of Reykjanesbaer with a principal value of ISK 6.3 billion repayable in 2016 with interest at 3.5% per annum. The principal amount is indexed based on movements in aluminum prices on the London Metal Exchange. The adjustment is equal to one half the relative difference between the actual price (capped at $3,250/tonne) and a reference price of $1,500/tonne.

HS Orka is an energy company that owns and operates geothermal power plants, while GGE is engaged in the harnessing of geothermal energy. Both HS and GGE are based in Iceland.”

Source: Trading Markets

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