News

Magma Energy receives US$10 million DOE funding for Soda Lake and McCoy

Alexander Richter 31 Oct 2009

Magma Energy Corp. announces that its US subsidiary, Magma Energy (US) Corp. has been awarded $10 million DOE funding for two of its Nevada geothermal exploration properties, Soda Lake and McCoy.

Announced by the company, “Magma Energy Corp. (TSX:MXY) announces that its US subsidiary, Magma Energy (US) Corp. (‘Magma’), has been awarded $10 million in American Recovery and Reinvestment Act funding for two of its Nevada geothermal exploration properties, Soda Lake and McCoy.

The grants will reimburse 50 – 80% of Magma’s planned innovative exploration expenditures on those properties over the next 24 months. At Soda Lake, Magma will apply new oil and gas technology to discover geothermal resources, and at McCoy, Magma will validate a combination of innovative exploration technologies in its search for a large geothermal reservoir on the property. The funding is part of $98.1 million allocated by the US Department of Energy under the Recovery Act for innovative geothermal exploration and drilling projects.

Dr. Frank Monastero, Magma’s President, said, ‘We are very pleased with this financial support through the Recovery Act for our aggressive program to explore and develop our Soda Lake and McCoy properties, in conjunction with exploration on our other 14 US geothermal exploration projects. This funding will allow us to test and develop some very creative exploration and drilling techniques that may have application to exploration on all our properties in due course. We will immediately implement these programs and I look forward to reporting on successful results as soon as possible.”

Source: Company announcement via Blog