News

Panax Geothermal raises working capital for Indonesian project advancement

Project site by Dairi Prima Minerals, Sumatra, Indonesia (source: panoramio)
Alexander Richter 14 Aug 2012

Panax Geothermal successfully raises $1.1 million in working capital for the advancement of PPA negotiations and the development of the Sokoria, Ngebel and Dairi Prima projects in Indonesia.

Last week, Australian developer Panax Geothermal announced it has raised A$1.1 million in working capital to finalize power purchase agreements and project financing discussions for its Indonesian projects.

The execution of the power purchase agreements for the Sokoria and Dairi Prima projects in Flores and North Sumatra are expected soon.

The power purchase agreement for the Ngebel project in East Java, in tandem with JV partner in all its projects PT Bakrie Power, is also close to to be finalized.

The money was raised through a share issue managed by Patersons Securities.

The proceeds of the fund raising will go towards legal and associated costs for finalizing the power purchasing agreements for the Sokoria and Dairi Prima projects with a planned generation capacity of each 30 MW.

The funds will also be used for site infrastructure, environmental studies, transmission line route analysis and for general working capital purposes.

The company and its partner Bakrie also provide an update on the Sokoria and Dairi Prima and Ngebel projects.

Dairi Prima

  • planned start of electricity production by late 2013
  • planned capacity 55 MW
  • off-taker PT Dairi Prima Minerals lead/ zinc mine
  • Electricity price $170/ MWh (up from currently $150)
  • Panax share in project 51%
Sokoria
  • Planned capacity of 30 MW
  • Off-taker is Indonesian government electricity regulator PT PLN
  • Expansion potential of up to 90 MW
  • Electricity price $150/ MWh (increase by 20%)
  • Panax share in project 45%

Ngebel

  • Panax earning 35% interest from Bakrie
  • Project location in East Java
  • Project size to increase to 220 MW, currently planned 165 MW
  • Electricity tariff to increase by about 33% to $120/ MWh
  • Possible right to develop transmission-related aspects of project, helping increase electricity tariff and certainty over timing and deliverability aspects of project

For further details see link below.

Source: Proactive Investors