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Molten Power Corp buys option for geothermal concessions in Guatemala

Amatitlan plant of Ormat, Guatemala - not related to story (source: Ormat)
Alexander Richter 4 Nov 2010

Radius Gold options its portfolio of geothermal concessions in Guatemala to private geothermal power company Molten Power Corp, which will operate the exploration project.

Ralph Rushton, Director of Radius Gold, is pleased to announce that the Company has optioned its portfolio of geothermal concessions in Guatemala to a private geothermal power company, Molten Power Corp. (“Molten”). Molten will be the operator of the geothermal exploration project.

Simon Ridgway, the President of Radius, commented: “We’re delighted to be working with Molten on the exploration and development of our geothermal concessions. With the tremendous interest in carbon-neutral, renewable energy, I’m pleased that our exploration programs may be able to contribute to the development of clean energy sources in Central America.”

Under the terms of the option, and subject to satisfactory technical and legal due diligence by Molten, Molten shall have the exclusive right to earn a 100% interest in the concessions from Radius by issuing 2 million shares in staged tranches according to a defined schedule.

Molten shall also issue to Radius warrants to purchase up to 1,000,000 shares exercisable for a period of five years from the date of the definitive agreement at a price of $3.00 per share.

Royalty: Radius also retains a two percent (2%) royalty of the Gross Revenue for the sale of geothermal electric power from the first power generation facility built on each geothermal licence. Molten may, at its discretion, purchase at any time prior to the commencement of the commercial operation date one half (1/2) of the 2% royalty from any geothermal license for the sum of CAD$30,000/MW nameplate capacity of the first power generation facility built on each geothermal licence. Any expansion of the nameplate capacity on any of the licenses is not subject to royalty payments.

About Molten Power Corp: Molten is a Vancouver based geothermal power development company. Molten’s mission is to create shareholder value through the acquisition, exploration, development and operation of geothermal power projects worldwide. Molten’s current project areas of interest include the western USA, Philippines, Guatemala, western Turkey, Indonesia, Eastern Africa and Hawaii.”

About Radius: Radius has been exploring for gold in Latin America for nearly a decade, and has assembled interests in a portfolio of promising gold projects throughout the region, including carried stakes in two small-scale developing gold projects in Guatemala and Nicaragua. Radius also has two 100% owned exploration plays, the HB property in Guatemala and the Sixty Mile property in the Yukon Territory.”

Source: company release via PR Newswire