Raya Group signs funding agreement for Indonesian projects

Panax Geothermal's project locations in Indonesia (source: Panax' corporate video)
Alexander Richter 21 Aug 2013

Australian developer Raya Group, formerly Panax Geothermal, reports it has signed an agreement with Australia-based Space Con Pty Ltd for the development and financing of the company's geothermal portfolio of projects in Indonesia.

Australian developer Raya Group (formerly Panax Geothermal) is reported to have “signed a heads of agreement with Australian based Space Con Pty Ltd for the development and financing of Raya’s portfolio of advanced geothermal development projects in Indonesia.

Space Con’s agreement with Raya has the backing of large Korean institutional banks who are seeking to provide the necessary debt / project financing aspects for the development of the Indonesian geothermal portfolio.

Raya will maintain a 20% free carry interest in each of the projects and is not required to contribute any additional funding towards exploration or development costs of the projects.

Significantly, it is therefore fully-funded for its share of the development of the projects. Raya will also receive a cash payment of $US1 million upon the commencement of the development of the first of the three geothermal projects.”

Source: Proactive Investors