Panax Geothermal plans capital raising in next few months
Panax Geothermal's Salamander-1 well at Penola, Australia (source: Panax)
Alexander Richter
19 Apr 2011
Australian geothermal development company Panax Geothermal (ASX: PAX) is planning a capital raising in the next coming months to improve its cash position for ongoing activities.
Reported today from Australia, “Cash-strapped geothermal energy hopeful Panax Geothermal Ltd (ASX: PAX) says it plans a capital raising in coming months. Reporting a cash position of only AU$1.4 million cash at the end of the March quarter.
“A key part of our strategy, focus and plans for the coming few months will be on ensuring that we can access equity capital and/or joint venture and project funding,” the company said in a statement on Tuesday.
Panax said it had recently made several presentations to potential investors in Australia, Singapore and the broader Asia-Pacific region, providing opportunities that were being “keenly advanced” given the company has projects in Indonesia.
It said it continued to hunt for geothermal energy projects in the Asia-Pacific region, including Indonesia, that were close to the development stage.
The company said it was reviewing its Penola project in South Australia, where progress to date had fallen short of expectations.
It was in talks with the federal government regarding potential new grant funding for hot sedimentary aquifer projects.
Source: Nine News
