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Wasabi Energy with approval to acquire 50% of Turkish project

Cannakale, Turkey (source: flickr/ iriskh, creative commons)
Alexander Richter 23 May 2012

Wasabi Energy reports it has received partner approval that its wholly owned subsidiary Imparator Enerji to acquire a 50% stake in an advanced geothermal project in Turkey.

Earlier this spring, Wasabi Energy announced that its wholly owned subsidiary Imparator Enerji1 had signed an Option Agreement to acquire a 50% interest in an advanced geothermal project in the Republic of Turkey .

It was announced that the Option is subject to partner and regulatory approvals, to be received by Wasabi before exercise of the Option and that the total consideration of US$11.75 million (including a US$5 million loan note to be issued by Wasabi, and subject to certain adjustments) would, subject to Wasabi deciding to exercise the Option, be payable in staged payments on or before 31 December 2013.

Wasabi now confirms that it has received the required partner approval from Egenda Enerji5, which is a majority-owned subsidiary of Enda Enerji Holdings A.S.5 (“Enda Enerji”), a leading independent power producer (IPP) experienced in the successful development and operation of power generation plants in Turkey. Subject to the exercise of the Option, Wasabi would develop the Project by way of a joint venture with Enda Enerji. The exercise of the Option remains subject to the Project Lender’s consent as well as regulatory approvals, including approval by the Energy Market Regulatory Authority (EMRA).”

The project subject to the Option includes an operating 7.5 MWe geothermal power plant in Canakkale Turkey. Significant build-out opportunity with historical studies indicating geothermal power generation potential of up to 80 MWe. Commenced pre-feasibility study for the development of a first stage 14 – 17.5 MWe build-out.

Source: Company release by Wasabi via email