News
Jun 09, 2010Register Now - Early Bird Pricing Ends June 11th - CanGEA Geothermal Conference - Agenda Available
CanGEA‘s Third Annual Geothermal Energy Conference and Trade Show
August 8 -10, 2010 Vancouver, British Columbia
Canadian Geothermal Energy Association (CanGEA) invites you to join us, as renewable energy developers, manufacturers, suppliers, utilities, engineers, geoscientists, lenders, insurers, power consumers and investors converge to discuss the latest projects, technologies, products and services and regulations. This three day event provides an excellent opportunity to meet and network with the geothermal industry key players.
Download the 2010 Conference Agenda Here
Book now before all seats have been reserved.
Early Bird Rate is in effect until June 11, 2010
Canada’s Largest Geothermal Energy Conference and Trade Show
May 31, 2010
Sierra Geothermal and Ram Power enter into Letter of Intent Ram Power to Acquire Sierra Geothermal
Reno, Nevada and Vancouver, British Columbia- Sierra Geothermal Power Corp. (TSXV:SRA) (“Sierra”) and Ram Power Corp. (TSX:RPG) (“Ram Power”) are pleased to announce that they have entered into a non-binding letter of intent in relation to the potential acquisition by Ram Power of all of the outstanding common shares of Sierra.
The letter of intent contemplates the acquisition by Ram Power of all of Sierra’s outstanding common shares by way of a share exchange whereby holders of outstanding Sierra shares would receive 1 common share of Ram Power for every 12 common shares of Sierra. All outstanding options and warrants to purchase Sierra shares will be exchanged under the transaction for options and warrants to purchase common shares of Ram Power in accordance with the exchange ratio. The transaction will result in the issuance of approximately 11.125 million common shares of Ram Power to shareholders of Sierra.
Based on the exchange ratio and Ram Power’s May 28, 2010 closing share price of $2.56, the implied offer price of $0.213 per Sierra share represents an 18.5% premium to its May 28, 2010 closing share price of $0.18 and a premium of 19.9% to Sierra’s 20-day volume weighted average price of $0.178.
The benefits of the transaction include:
- Allows shareholders of Sierra to recognize an attractive premium to the existing Sierra share price, while obtaining an interest in Ram Power’s broader portfolio of operating, in-construction, and development geothermal assets.
- Shareholders of Sierra will become shareholders of Ram Power, with its experienced management team and strong balance sheet;
- Increases Ram Power’s footprint in Nevada, one of the premier regions for geothermal development in the United States;
- Potential for synergistic development of a power cluster in Esmeralda County, Nevada as Ram Power’s Clayton Valley land positions are contiguous to Sierra’s Paymaster District projects: Alum, Silver Peak and Pearl;
- Acquired projects improve the ability of Ram Power to deliver additional power under its existing power purchase agreement with NV Energy;
- Continuance of the consolidation process underway in the geothermal industry and the enhancement of Ram Power’s position as a market leader amongst independent geothermal energy companies.
The parties expect to enter into definitive agreements in relation to the transaction towards the end of June 2010, subject to negotiation of mutually satisfactory terms, completion of confirmatory due diligence and the receipt of lock-up commitments in favour of the transaction from Sierra’s largest shareholders. In addition, the closing of any transaction will be conditional upon receipt of any required regulatory and shareholder approvals. Under the letter of intent, Ram Power and Sierra have agreed to negotiate exclusively in order to complete confirmatory due diligence and negotiate definitive agreements.
Gary Thompson, SGP’s President, Chief Executive Officer and Executive Director stated, “We are pleased that our formal strategic process led by Jacob Securities Inc. has resulted in a transformative transaction for Sierra shareholders. We believe that Sierra shareholders will benefit from this transaction by merging into a well capitalized geothermal company such as Ram Power. The transaction has the full support of the Sierra Board of Directors, Special Committee, and Management who will be working closely with Ram Power over the coming weeks to finalize and execute definitive agreements.”
Hezy Ram, Chief Executive Officer for Ram Power stated, “We are very pleased about the letter of intent with Sierra. This transaction comes as a continuation of our strategy to create a renewable energy company of scale, with the skilled management and capital in place to execute on our projects.”
ABOUT RAM POWER CORP.
Ram Power is a renewable energy company based in Reno, Nevada, engaged in the business of acquiring, exploring, developing, and operating geothermal properties and has interest in geothermal projects in the United States, Canada, and Latin America.
ABOUT SIERRA GEOTHERMAL POWER CORP.
Sierra is a Vancouver-based geothermal energy company focused on the exploration and development of clean, sustainable power in Western North America. Sierra has 100% control over its 120,000 acre portfolio of geothermal properties in Nevada, California and British Columbia. Sierra’s projects have a combined total estimated capacity of almost 400MW.
On behalf of the Board of Directors
Gary Thompson, P.Geo
President, Chief Executive Officer and Director
FOR FURTHER INFORMATION PLEASE CONTACT:
Sierra Geothermal Power Corp.
Anthony Srdanovic
Investor Relations
(604) 683-0332 x 115
.(JavaScript must be enabled to view this email address)
http://www.sierrageopower.com
Ram Power Corp.
Steven Scott
Director of Investor Relations
(775) 398‐3711
.(JavaScript must be enabled to view this email address)
http://www.ram-power.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This press release contains forward-looking statements. Forward-looking statements are projections of events, revenues, income, future economic performance or plans and objectives for future operations. In some cases you can identify forward-looking statements by the use of terminology such as "may", "should", "anticipates", "believes", "expects", "intends", "forecasts", "plans", "future", "strategy", or words of similar meaning. Forward-looking statements in this press release include statements about the proposed transaction, the expected date of entering into definitive agreements and the benefits the transaction might bring to Ram Power, Sierra and their respective shareholders. While these forward-looking statements and any assumptions upon which they are based are made in good faith and reflect the current judgment of management at both Ram Power and Sierra, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other forward-looking information suggested in this press release. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks that the companies are unable to negotiate a mutually acceptable agreement, the risk that they cannot obtain the consents that may be required in order to consummate the transaction, the risk of adverse changes to either company or the industry in which they operate, as well as the general business risks described in the periodic disclosure documents filed by Ram Power and Sierra on SEDAR, copies of which are available at www.sedar.com. Any of these risks could cause actual results or achievements to be materially different from those that are expressed or implied by the forward-looking statements contained in this press release. Except as required by applicable law, neither of Ram Power or Sierra intends to update any of the forward-looking statements to conform these statements to actual results.
May 31, 2010
CanGEA releases Member Project Database
The Canadian Geothermal Energy Association (CanGEA) today released the much anticipated CanGEA Member Projects Database. The report outlines all the various CanGEA member projects under development around the world. This inaugural report is the first of its kind for the Canadian geothermal energy industry.
According to the report CanGEA members are currently working on more than 70 projects under development representing more than 1,400 MW, and nearly 2,000 MW of installed geothermal capacity. The projects listed span four continents and eleven countries giving CanGEA members a truly global reach in their operations. While there is currently no geothermal power production in Canada there are nevertheless a number of projects under development which may soon come online to supply Canada’s first few megawatts of geothermal power.
Typically projects have been categorized in terms of resource development. The CanGEA Member Projects Database instead recognizes three levels of Geothermal Resources and two levels of Geothermal Reserves. With increasing geological knowledge and confidence a Geothermal Resource progresses from Inferred, to Indicated, to Measured. Similarly, with consideration of energy recovery and conversion, economic, marketing, environmental, social, legal, and regulatory factors (all Modifying Factors) the resource may be labelled a Probable or Proved Geothermal Reserve.
The CanGEA Member Projects Database utilizes the Canadian Geothermal Code for Public Reporting to provide a framework for comparison among industry players. Included in the Database is the Geothermal Progress Checklist which lays out the framework to categorize projects under development based on geological knowledge and modifying factors such as economic and legal factors. The checklist highlights the necessary steps in the development of a geothermal resource from exploration to production. Applying this framework allows for universal comparison among projects under development while also providing the cursory framework to adhere to the Canadian Geothermal Code for Public Reporting.
For a copy of the CanGEA Member Projects Database please follow the link below. CanGEA encourages interested parties to provide feedback for future iterations of the report and welcomes any questions or comments.
About CanGEA: CanGEA is a national industry association that believes we can provide competitively priced, emissions free, renewable, base-load energy to Canadians and to U.S. export markets. CanGEA works on behalf of our members to facilitate the growth of geothermal power projects and promote publicly listed companies on the Canadian Exchanges.
Contact: David Gowland dave@cangea.ca
Policy Director, Canadian Geothermal Energy Association
To view the report click here
May 18, 2010
Magma Energy Corp To Hold 98.53% Of Iceland Geothermal Energy Producer HS Orka
| MAGMA ENERGY CORP. : http://www.magmaenergycorp.com/ : News Releases |
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Vancouver, B.C., Canada, May 17, 2010 - Magma Energy Corp. (TSX:MXY) is pleased to announce that it has signed an agreement with Geysir Green Energy ehf ("GGE") to purchase all of GGE's stake in Iceland geothermal company HS Orka hf ("HS Orka") resulting in Magma's stake increasing to 98.53%. HS Orka currently produces 175 megawatts ("MW") of geothermal power and 150 MW of thermal energy for district heating, and has near-term expansion plans that would increase its power production to 405 MW by 2015. The transaction will increase Magma's geothermal power production to 186 MW, its geothermal reserves to 193 MW and its indicated and inferred geothermal resources to 1,161 MW. The remaining 1.5% stake in HS Orka is held by four Icelandic municipalities. Magma's Chairman and CEO, Ross Beaty commented, "I am really pleased with this landmark acquisition, which brings Magma such long term core assets as large scale low cost geothermal power production, enormous in-ground geothermal resources that will enable additional future production growth, and a wonderful team of Icelandic geothermal experts who can help us grow both in Iceland and internationally." The agreement provides that Magma's wholly owned subsidiary will purchase GGE's remaining interest in HS Orka for 10.56 billion Icelandic Króner ("ISK") (approximately $84.5 million) and by assuming a bond issued by GGE with a face value of 6.29 billion ISK (approximate net present value of $36 million). Magma may elect to pay $26.55 million of the purchase price in common shares valued on the basis of Magma's trading price in late July 2010 and the remaining cash component in two tranches of $45.45 million by July 31, 2010, and $12.50 million by November 30, 2010. The bond will be secured by 27.35% of the shares acquired by Magma in this transaction. The Company plans to finance this transaction by: bridge financing, conventional debt and/or equity financing, and/or sale of a minority stake in HS Orka to other Icelandic or offshore investors. The agreement is subject to several closing conditions and is expected to close in late July 2010. HS Orka published its first quarter 2010 financial results today and the results have been reconciled to Canadian GAAP. Summary financial information with respect to the operation of HS Orka, on a 100% basis, is as follows:
About HS Orka HS Orka is the largest privately owned energy company in Iceland producing 9% of the country's power needs. Installed geothermal power capacity is 175 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. HS Orka's 75 MW Svartsengi plant began production in 1978 and its 100 MW Reykjanes plant began production in 2006. 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. The expansion plans of HS Orka will provide power to a new aluminum smelter that is currently under construction. 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 two other operating power plants in Iceland. For further information please contact: Alison Thompson, Vice President, Corporate Relations Magma Energy Corp. Phone: 604.646.1882 Email: .(JavaScript must be enabled to view this email address) CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS AND INFORMATION This news release contains certain "forward-looking information" within the meaning of Canadian securities laws, which may include, but is not limited to, statements with respect to future events or future performance, prospects for closing our acquisition of an interest in HS Orka, plans to expand our and HS Orka's geothermal power production, management's expectations regarding our growth, business prospects and opportunities and geothermal energy generation capacities. Such forward-looking information reflects management's current beliefs and is based on information currently available to management. A number of known and unknown risks, uncertainties and other factors, may cause our actual results or performance to materially differ from any future results or performance expressed or implied by the forward-looking information. The forward-looking information is based upon what management believes to be reasonable assumptions, including, but not limited to, assumptions about: conditions to closing our acquisition of an interest in HS Orka being met, the success and timely completion of planned exploration and expansion programs, the growth rate in net electricity consumption; support and demand for non-hydroelectric renewables; government initiatives to support the development of renewable energy generation; the accuracy of reserve estimation methodology and analysis used to estimate the quantity of potentially recoverable thermal energy; geological, geophysical, geochemical and other conditions at our properties; the reliability of technical data, including extrapolated temperature gradient, geophysical and geochemical surveys and geothermometer calculations; capital expenditure estimates; availability of capital to fund development and expansion programs; and general economic conditions. Forward-looking information and statements are also based upon the assumption that none of the identified risk factors that could cause actual results to differ materially from the forward-looking information and statements will occur. There can be no assurance that the forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, prospective investors should not place undue reliance on forward-looking information. Other than as required by applicable securities laws, we assume no obligation to update or revise such forward-looking information to reflect new events or circumstances. |
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Copyright © 2010 by Magma Energy Corp. All rights reserved worldwide. |
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This page was created on Tue May 18, 2010 at 3:08:33 PM Pacific Time.
May 18, 2010
Geothermal Power versus GeoExchange Heating and Cooling
There has been much confusion of late between geothermal power and geoexchange heating and cooling. Perhaps the easiest way to differentiate between the two is to think of geothermal power as the deeper, hotter resource that generates electricity while geoexchange uses the ambient heat of the near surface earth to provide heating and cooling for residential of commercial use.
Geothermal Power
Is derived from deep, hot geothermal resources. These are often found 2-4 km below the surface and are typically in excess of 70 degrees Celsius. Water or fluid is used to transfer the heat from the deep resource to the surface which drives a turbine and generator to produce electricity. While this geothermal power is predominantly used to generate electricity the waste heat can also be used for heating in residential and commercial applications. Find out more here
GeoExchange
These systems use heat pumps which collect and/or distribute heat through a network of pipes buried 1-2 meters below surface or submerged in a body of water. Such systems rely on the relatively constant temperature of the earth just below the frost line which is typically 5-10 degrees Celsius. A heat pump or heat exchanger collects and concentrates this heat to provide heating during colder months. In summer the process is reversed to provide cooling by disseminating heat to the surrounding environment. These systems require electricity to run the pumps and equipment and do not generate electricity. See www.geo-exchange.ca to learn more.
