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Jan 15, 2008Sierra Geothermal Power and Nevada Geothermal Power Amend Pumpernickel Property Option Agreement
SIERRA GEOTHERMAL POWER AND NEVADA GEOTHERMAL POWER AMEND PUMPERNICKEL PROPERTY OPTION AGREEMENT
Vancouver, British Columbia - Sierra Geothermal Power Corp (SGP); (TSX-V: SRA), is pleased to announce that on December 12, 2007 it signed an amendment to its option agreement with Nevada Geothermal Power Inc (NGP) to revise the earn-in schedule for the Pumpernickel geothermal property. The original option agreement was entered into on October 12, 2004 and amended on February 14, 2006. To date, SGP has issued 400,000 shares of stock and forwarded C$1,000,000 to Nevada Geothermal for the Pumpernickel property.
In order to complete the earn-in schedule and acquire a 50% interest in the Pumpernickel property, SGP is required to make remaining cash payments and to issue stock as follows: (a) pay NGP $70,000, (b) incur exploration and development expenditures totaling C$4,000,000 and (c) issue 200,000 common shares of SGP to NGP by December 15, 2008.
The Pumpernickel Property is operated by NGP and is located in Humboldt County, Nevada. Previous work on the Pumpernickel Project has produced reservoir temperature estimates from 150°C (302°F) to 218°C (424°F). Future work will include temperature gradient wells, a full size production test well, transmission studies and feasibility studies. The Pumpernickel site is estimated to contain a 20 – 30 megawatt resource. Thirty megawatts can provide enough electricity to power 24,000 homes.
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Sierra Geothermal Power and Nevada Geothermal Power Amend Pumpernickel Property Option Agreement
