News
Jun 08, 2011Nevada Geothermal Power Inc. Acquires Iceland America Energy, Inc. Project Assets In Imperial Valley
Vancouver, B.C. (June 8, 2011), Nevada Geothermal Power Inc. (NGP) (TSX.V: NGP, OTCBB: NGLPF) and Iceland America Energy, Inc. (IAE) are pleased to announce that they have closed an agreement (News Release dated February 23, 2011) whereby NGP has purchased a 100 percent ownership of IAE’s geothermal assets comprised of the New Truckhaven, East Brawley and South Brawley Projects in the Imperial Valley, Southern California for a payment of US$680,000 in cash (US$564,000 paid) and 6,074,069 shares (to be issued). Reykjavik Energy Invest hf (REI), a subsidiary of Reykjavik Energy (RE-Orkuveita Reykjavikur, Iceland), is the majority owner of IAE with an 83.7% interest and will become a significant shareholder of NGP.
The acquisition of these strong project assets in California is in keeping with NGP’s business plan of focusing on U.S. geothermal power development, expanding geographically into higher temperature resource areas and diversifying off-take agreements. The alignment of interest with REI as a shareholder, and RE-Orkuveita Reykjavikur, an experienced geothermal developer and power plant operator, provides opportunities for cooperation in the future for mutual benefit.
The Imperial Valley is one of the world’s premier geothermal areas with highly productive, high temperature geothermal resources occurring over a large area in an active structural belt. Existing power plants at four sites have an aggregate capacity of approximately 560 MW, however the development potential of the Valley is considered to be much greater. California has the most aggressive Renewable Portfolio Standard of any US State and requires significantly more clean power to be developed in the next six years. The Company’s newly acquired projects are well located to supply the large southern California market with needed clean, renewable, base-load geothermal power.
