Panax Geothermal to raise funds for project in planned placement of $4million
Field location, Sokoria project, Flores, Indonesia (source: Panax Geothermal)
Alexander Richter
2 Jun 2011
Australian development company Panax Geothermal (ASX: PAX) is raising AU$3.7m (US$4m) to further develop its near therm project, e.g. in Indonesia.
Reported from Australia, “Panax Geothermal (ASX: PAX) is raising AU$3.7m (US$4m) to further develop its near therm projects.
The fundraising effort is partially underwritten by Taylor Collison to the tune of A$2m with the rights trading due to end on 22 June. The rights issue will be carried out on a six to ten basis at two pence per share.
Traditionally an Australia-oriented company, Panax signed an agreement with PT Pakrie Power – a division of Indonesia-listed PT Pakrie Group – 18 months ago to collaboratively work on projects throughout Indonesia.
Its current portfolio has the capacity to produce geothermal electricity in excess of 300MW, with about 165MW net to Panax.
Indonesia has long been considered a geothermal ‘hotspot’ with the government publicly announcing plans to increase generation by 240 per cent over the next four years to more than 4GW.
With latest estimates showing a potential resource in the region of 27GW, this is just a fraction of the country’s geothermal capacity.
Mirroring tactics deployed by government’s elsewhere, the Indonesian government has issued a feed-in tariff for geothermal power, underpinning the sector’s growth. The subsidy provides investor certainty to potential developers that is not currently available in Australia.”
Source: New Energy World Network
