Panax Geothermal acquires Osiris Energy

Panax Geothermal Ltd., an Australian geothermal development company, listed on the Australian Stock Exchange, received approval to acquire Osiris Energy Pty Ltd, an Australian unlisted geothermal exploration company.

Panax paid in shares of itself for AU$14.8 million (US$ 9.6m). The merger is subject to Panax raising a minimum of AU$20 million (US$ 13.2m) in new working capital and has to be approved by the company’s shareholders. The Canadian Dundee Securities Corp. was engaged to assist in raising AU$25-30 million (US$ 16.4-19.7m) in new equity.

After the completion of the merger, Panax will have approximately A$35 to 37.5 million (~US$ 24m) in available cash, which would help the company to significantly advance its key Limestone Coast Geothermal Project in South Australia.

The statement of the company also highlights that the founding Directors of Osiris will remain in the business ensuring that their expertise and experience remains accessible. Panax is a pure geothermal company with more than AU$9 million (US$ 6m) in cash, and no debt.

Source: Company Media Release (pdf)