News
Dec 19, 2008Sierra Geothermal Power Drops Pumpernickel Option
VANCOUVER, BRITISH COLUMBIA—(Marketwire - Dec. 16, 2008) - Sierra Geothermal Power Corp. (SGP) (TSX VENTURE:SRA) announces that it has decided not to exercise its option to earn a 50 percent interest in the Pumpernickel Project in Nevada. Under the terms of its option agreement with Nevada Geothermal Power dated October 12, 2004, SGP could have exercised the option on or before December 15, 2008, by providing $4 million for work commitments, paying a $70,000 option payment and issuing 200,000 of its common shares to Nevada Geothermal Power.
Gary Thompson, CEO of SGP, said that “When we considered this project in light of the current state of our economy and our stock markets, to say nothing of how it relates to our total portfolio, we determined that it was not in our best interest to exercise the option. Although the Pumpernickel Project remains an attractive geothermal target, our potential 50 percent interest comprised a very small portion of our total portfolio and power output estimates. We have determined that it is more prudent to conserve capital and focus on our wholly owned projects. We have approximately $4 million on hand and no debt as of December 15, 2008. We own a 100% interest in the remainder of our portfolio of projects subject to a US$151,000 payment due April 2009.”
