Ram Power signs drilling contract for Phase II of San Jacinto project, Nicaragua

Ram Power signs drilling contract for Phase II of San Jacinto project, Nicaragua ThermaSource drilling rig on project site at San Jacinto, Nicaragua (source: Ram Power)
Alexander Richter 6 Jun 2013

Ram Power Corp signs contract for remediation drilling program for San Jacinto project in Nicaragua with ThermaSource and amends loan agreement with IFC.

Ram Power, Corp. (TSX: RPG) announces having executived a drilling contract for a new drilling program and amendments to the Phase II credit facility.

“The Company executed a drilling contract with ThermaSource Inc., for the remediation drilling program scheduled to begin in early July 2013. The remediation program, expected to be complete by late October 2013, calls for the refurbishment of two existing production wells with a targeted increase in steam availability of approximately 70-110 tonnes/hour, or approximately 9 to 14 MW of additional net capacity. Any increased steam production from the remediation program would be available for production use the latter part of the year. The Company, together with Sinclair Knight Merz, the Company’s resource consultant, finalized the remediation plan based on the production performance of the Project during the first several months of operations.

“The Company reached an agreement with its project lenders syndicate, led by the International Finance Corporation, to amend its Phase II Credit Agreement for Project. The amendment extends the date for conversion of the construction loan to a term loan from June 2, 2013 to June 29, 2013 and allows for the funding of the remediation drilling program beginning in early July from the Project’s major maintenance reserves established under the Phase I and II Credit Facilities. During this period, the Company and the Lenders will continue to work together to satisfy certain conditions precedent associated with the loan documents for conversion.

Antony Mitchell, Executive Chairman of the Company, stated, “We continue to work diligently with the Phase II lending syndicate on finalizing the conditions precedent for the term-out conversion of the Phase II Credit Facility, and look forward to beginning our resource remediation efforts next month.”

Source: Company release via Marketwire