Panax Geothermal provides project update in annual report

Alexander Richter 15 Sep 2009

Australian Panax Geothermal Limited gives an overview over its activities in the past years, both on the corporate level, but als with regards to its projects in Australia and internationally, including India, Slovakia, Tajikistan and Kyrgyz Republic.

In its recent annual report, Australian Panax Geothermal Limited gives an overview over its activities in the past years, both on the corporate level, but als with regards to its projects in Australia and internationally.

For Australia, the company provides these key activities:

Acquisition of Osiris Energy Limited, holder of the GEL 223 Penola Geothermal Project (successful GDP application in April 2009) and the advanced Tirrawarra Geothermal Project (GEL 281); Successful application for Geothermal Drilling Grant for $AUD 7 million for Penola Geothermal Project in Limestone Coast region of South Australia;

Successful capital raising of $AUD 9.3 million in June/July 2009, including strong support from 82% of current Panax shareholders. A number of new institutional investors also participated in the raising;

2 Measured Geothermal Resources reported (under Australian Geothermal Reporting Code) for the Penola Project, and the Tirrawarra Project. Panax now has 2 of the 3 Measured Geothermal Resources in Australia; and Strong likelihood to be the first grid connected, base load, geothermal project in Australia.

Internationally these activites were mentioned by Panax Geothermal:

Likely near term progress with the advanced Puga Geothermal Project in India (subject to completion of final permitting issues);

Continuation of assessment and ranking of projects in Kyrgyz Republic;

Advanced stage of application for support from World Bank s geofund for projects in Kyrgyz Republic and Tajikistan;

Identification of potentially advanced projects in Slovakia permitting is now in progress. Slovakia is characterised by the support of high tariffs (approximately Euros 200 / MWh) for renewable energy projects; and Continuation of search for advanced geothermal projects in Indonesia and surrounds.

On the corporate level, Panax has broadened its shareholder support since listing as Panax Geothermal Ltd and currently has approximately 1,500 shareholders an increase of close to 100% in the last 12 months.

In December 2008, Panax strengthened both its position and understanding of the Limestone Coast Geothermal Area, via the acquisition of unlisted geothermal energy company, Osiris Energy Limited.

As part of that acquisition, Panax also acquired the GEL 281 geothermal exploration licence which is the subject of a separate GDP Application due to be decided by mid November 2009. Panax has recently and very successfully completed an underwritten capital raising in the amount of approximately $9.3 million (before the costs of the offer), via the issue of approximately 71.6 million new shares in Panax at an issue price of $0.13 per share.

Significantly, the equity raising was managed and underwritten by Wilson HTM Corporate Finance Limited. The take-up of the total Entitlement Offer (i.e. the combined Institutional Entitlement Offer and Retail Entitlement Offer) totalled approximately $4.76 million, or a take-up rate of 82%. The offer received very strong support from new institutional shareholders with high demand for the Placement and Accelerated Entitlement components of the offer. Support from current shareholders for the Entitlement Offer was likewise very strong.”

Source: Panax Geothermal Ltd. Annual Repart via The Age