Magma Energy with results and udpates for Q3 2009

Alexander Richter 14 Nov 2009

Magma Energy Corp. reported its financial and operating results for the first quarter ended September 30, 2009 and provides overview on activities at Soda Lake, Iceland, Chile and other projects of the company.

In a release, “Magma Energy Corp. (TSX:MXY) reported its financial and operating results for the first quarter ended September 30, 2009.

Commenting on today’s announcement, Ross Beaty, Chairman and CEO, said: “Magma Energy grew very quickly in the first quarter of fiscal 2010. We completed our initial public offering on July 7, which raised $88 million net of costs. We also added seven new geothermal exploration properties in Nevada, announced discovery of a 140 megawatt (“MW”) geothermal resource on our Maule property, Chile, and entered into agreements in Iceland that, when completed, will result in Magma becoming a 43% owner of Iceland’s largest private geothermal power company. These transactions will all help us achieve our mission of becoming one of the world’s pre-eminent geothermal power producing companies.”

On its activities the company talks about its various activities.

Soda Lake: Magma’s Soda Lake operation produced as expected during the quarter with occasional interruptions due to the Phase 1 expansion program now underway that is designed to double production from 11 MW gross (8 MW net) to 23 MW gross (16 MW net).

Iceland: During the first quarter Magma announced two transactions involving its purchase, for a total of $55 million in cash and issuance of a $70.6 million bond, of 43% of Iceland’s largest private geothermal company HS Orka. The transactions are expected to close during the second quarter. HS Orka produces 175 MW of geothermal power and has expansion plans to increase this to 425 MW by 2015.

Exploration Activities: Magma announced in July the discovery of a major 140 MW geothermal resource at its Maule property, Chile, and applied for an exploitation licence for a 50 MW power plant. Approval of this licence and additional exploration rights is pending. Road construction and drill tendering is now underway that will enable additional drill testing in January of this promising project.

In the USA, our exploration portfolio was further increased in July with acquisition of seven new properties in Nevada at a BLM auction. This increases Magma’s land position to 131,500 acres in the US and 430,600 acres in Latin America, one of the largest holdings of any geothermal company globally. We are now permitting our planned geophysical, geological and drilling work at these properties to enable rapid testing of their geothermal potential. Magma was recently awarded $10 million in funding from the Department of Energy for our McCoy and Soda Lake properties, which will allow us to test and develop some innovative exploration and drilling techniques that may have application to all our properties, and which will allow us to extend our exploration funds to other projects.

Magma also undertook early stage exploration activities during the quarter at its other Latin American properties and, in early October, won two geothermal concessions in Nicaragua in joint venture with Ram Power.

Magma’s Chairman and CEO, Ross Beaty, concluded: “Magma’s discovery of a world class geothermal resource at Maule in Chile, our acquisition of an interest in HS Orka in Iceland and our addition of the new properties in Nevada are all consistent with our mission to grow quickly into an industry-leading geothermal power company and to create shareholder wealth through successful exploration, operations and acquisition. I look forward to continuing progress on our mission as we develop our existing assets further and acquire new ones, while maintaining our strong financial condition.”

For the full release use link below

Source: Company release via Marketwire