VANCOUVER, B.C., CANADA, July 14, 2009 - Magma Energy Corp. (TSX: MXY) ("Magma") today acquired seven new properties at an auction by the Bureau of Land Management of geothermal leases on U.S. federal government lands in Nevada. The leases comprise approximately 67,950 acres and were acquired for a total cost of US$2,559,000. Three of these leases, comprising approximately 13,200 acres, are located adjacent to our Soda Lake operation and one lease, comprising approximately 3,600 acres, is located adjacent to our McCoy advanced exploration property. These leases enable Magma to explore for and develop geothermal resources for a primary term of ten years, subject to minimal annual rentals. If commercial geothermal resources are developed the leases continue indefinitely.
Frank Monastero, President of Magma Energy (US) Corp., said, "I am very pleased we have added these geothermal properties to our large existing portfolio of ten properties in Nevada, Utah and Oregon. Many of our new properties have had considerable historic geothermal exploration and will significantly add to our pipeline of exploration projects, as well as confirm us as one of the most active geothermal exploration and development companies in the United States."
Magma Energy Corp. currently holds approximately 131,500 acres of geothermal rights in the US and 430,600 acres in Latin America, one of the largest holdings of geothermal exploration properties of any company globally. The Company is actively drilling production wells at its Soda Lake operation in Nevada designed to increase Soda Lake's generating capacity from 11 megawatts ("MW") gross (8 MW net) to 23 MW gross (16 MW net), and has recently completed an exploration program on its Maule concession in Chile.
About Magma Energy Corp.
Magma Energy Corp. is a geothermal power company which is actively engaged in operating, developing, exploring and acquiring geothermal energy projects. We currently have one operating power generation plant (the Soda Lake Operation in Nevada), and an extensive portfolio of exploration properties throughout the western United States, Chile, Argentina and Peru.
For further information please contact:
Andrea Zaradic, Vice President, Corporate Development
Magma Energy Corp.
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, management's expectations regarding our program to expand the generating capacity of our Soda Lake operation, our exploration results, extensions to Bureau of Land Management leases and estimates of 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: 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 volumetric reserve estimation methodology and probabilistic analysis used to estimate the quantity of potentially recoverable 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 exploration, 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.