News
Apr 01, 2010Magma Energy Completes Purchase Of A Further 2.16% Interest In Icelandic Geothermal Energy Producer
CanGEA member Magma Energy Corp. announced that it has now closed a previously announced agreement to acquire from Geysir Green Energy a 2.16% stake in HS Orka, a large producing geothermal company in Iceland. Magma Energy also reports that it has contributed new equity to HS Orka in order to finance its continuing development and expansion. Magma Energy has contributed approximately $8.0 million and Geysir has contributed approximately $12 million for a total contribution of $20 million. Magma Energy now holds a 43.2% direct interest in HS Orka.
Vancouver, B.C., Canada, April 1, 2010 - Magma Energy Corp. (TSX:MXY) Magma Energy Corp. reports that it has now closed a previously announced agreement to acquire from Geysir Green Energy a 2.16% stake in HS Orka, a large producing geothermal company in Iceland, for 625 million Icelandic Kronur (“ISK”) (approximately $5 million).
Magma Energy also reports that it has contributed new equity to HS Orka in order to finance its continuing development and expansion. Magma Energy has contributed approximately $8.0 million and Geysir has contributed approximately $12 million for a total contribution of $20 million. Magma Energy now holds a 43.2% direct interest in HS Orka.
HS Orka is the largest privately owned energy company in Iceland. Installed geothermal power capacity is 175 megawatts (“MW”) from the Svartsengi and Reykjanes power plants. In addition, HS Orka generates 150 MW of thermal energy for district heating. Expansions are planned that will increase HS Orka’s geothermal power production to 405 MW by 2015. Much of the power is sold under US dollar contracts to a large aluminum smelter that is one of the world’s lowest cost aluminum producers.
About Magma Energy Corp.
Magma Energy Corp. is a geothermal power company which operates, develops, explores and acquires geothermal energy projects. We have an extensive portfolio of properties throughout the western United States, Iceland and Latin America, including one operating power plant in Nevada and an interest in two other operating power plants in Iceland.
About Iceland’s Geothermal Industry and Geysir Green Energy
Iceland has one of the world’s largest and best developed geothermal industries, supported by substantial geothermal resources and a highly skilled domestic workforce. Geothermal energy accounts for 23% of Iceland’s electricity demand and powers many of Iceland’s homes and businesses, including Iceland’s large aluminum industry.
Geysir Green Energy is a private geothermal development company with a majority stake in HS Orka, a 100% interest in geothermal drilling company, Iceland Drilling, and significant geothermal assets elsewhere in the world.
To view this article in its entirety click here
