P Squared to fund ongoing geothermal exploration work in BC, Canada
As part of its acquisition of Borealis GeoPower, P Squared Renewables announces having set aside a bridge loan of $225,000 for ongoing exploration work on the geothermal project in British Columbia, Canada.
In a release on trading to resume on its common shares on the TSX Venture Exchange today, P Squared Renewables Inc. also announces that it has put in place a secured $225,000 “Bridge Loan” facility with Borealis GeoPower Inc. Amounts shall be advanced periodically by P Squared under the Bridge Loan on an as needed basis, and used by Borealis primarily to fund its current exploration activities on its two geothermal projects, and expenses to be incurred in connection with the proposed transaction between P Squared and Borealis. The provision of the Bridge Loan facility by P Squared to Borealis has been accepted by the TSX Venture Exchange.
P Squared entered into a letter of intent with Borealis and its shareholders that sets out the basic terms and conditions pursuant to which it is intended that P Squared and Borealis will complete a business combination. The Proposed Transaction is intended to be the Qualifying Transaction of P Squared pursuant to the Policies of the TSX Venture Exchange. Please refer to P Squared’s news release dated July 5, 2017 for further information regarding Borealis and the Proposed Transaction.
Subject to TSXV approval, and as a condition of the Proposed Transaction, P Squared intends to conduct a private placement of common shares for minimum proceeds of $5 million and a maximum of $10 million (the “Financing”). Further details of this Financing will be provided in due course.
Source: Company release