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Panax Geothermal and Molten Power extend term of funding agreement

Panax Geothermal's project locations in Indonesia (source: Panax' corporate video)
Alexander Richter 9 Nov 2011

Australian geothermal developer Panax Geothermal and Canadian Molten Power Corp. agree on the extension to the term of the agreement on exploration and development funding, that would give Molten a 50% stake in Panax's Indonesian projects.

In an announcement this morning, Australian geothermal developer Panax Geothermal provides an update on the progress of its funding package with Molten Power Corporation.

Panax is in regular and on-going discussions with Molten, and has recently completed a series of meetings and discussions with Molten and its investors in the United Sates.

While Panax remains sufficiently confident that Molten will be able to provide the required funding for Panax’s portfolio of advanced projects in Indonesia, it is clear that Molten will require some additional time to enable them to fulfill those objectives.

On this basis, Panax and Molten have agreed to a six week extension to the term of the Heads of Agreement, to allow Molten sufficient additional time to complete its required financing arrangements.

Panax is confident of building a strong working relationship with Molten and its team, and is sufficiently satisfied with the work completed by Molten to date in seeking financial close on this transaction.

Panax Managing Director Mr Kerry Parker said Panax was delighted to be progressing with a partnership with a company of Molten Power’s calibre. “Molten will bring additional strength of personnel and experience to Panax’s advanced portfolio of projects in Indonesia, and it is clear that they have made sufficiently strong progress in their financing discussions to date” he said.

“Molten and its people have significant experience in large-scale geothermal development activities across the world, and they have recognised the quality and strength of Panax’s portfolio of projects that have been assembled over the past 18 months”.

Mr Parker said that Panax was pleased that Molten had been able to easily see the long term economic value of the portfolio of projects that Panax has been able to assemble in Indonesia.”

Source: Company release via e-mail.

Panax Geothermal corporate overview video: