Alterra Power Corp. (TSX: AXY) announces the completion of a joint venture agreement with Energy Development Corporation (EDC) for the development of Alterra’s Mariposa geothermal project in Chile plus three geothermal concessions held by Alterra in Peru.
The agreement calls for EDC to earn a 70% interest by funding 100% of the next $58.3 million in project expenditures at Mariposa, and $8 million in project expenditures on the Peruvian concessions.
Advancement of individual projects will occur under separate shareholder agreements which will follow the commercial terms of the joint venture agreement. Such agreements are expected to be executed later in 2013 subject to final documentation and project evaluation by EDC.
About Alterra’s Mariposa and Peruvian Geothermal Assets
The Mariposa geothermal power project is located approximately 300 kilometers south of Santiago, Chile. It is comprised of the Laguna del Maule and Pellado concessions, which total 104,000 hectares and completely encompass a geothermal system that has an inferred estimate of 320 megawatts. Alterra has conducted extensive exploration and infrastructure work at Mariposa, including three slim-hole wells and a 26-kilometer access road. Alterra also has early-stage geothermal projects in the southern volcanic belt of Peru. Initial indications and Alterra’s exploration activities to date have supported the presence of
large geothermal resources.
About Energy Development Corporation (EDC)
EDC is a Philippines-based global leader in the geothermal energy industry that has been developing and operating power plants since 1977. The company’s operating portfolio of 11 geothermal power plants and two hydro facilities totals 1,262 megawatts of capacity and produced over 3,600 gigawatt-hours in the first half of 2012. EDC has been actively expanding its project portfolio to Indonesia, Peru and Chile.
Alterra Power Corp. is a leading global renewable energy company. Alterra operates six power plants totaling 566 MW of capacity, including two geothermal facilities in Iceland, a geothermal plant in Nevada, British Columbia’s largest run-of-river hydro facility and the province’s largest wind farm. The company’s 297 MW share of production capacity generates approximately 1,400 GWh of clean power annually. Alterra also has an extensive portfolio of exploration and development projects, a skilled international team of developers, explorers, builders and operators to support its growth plans.