TSX : AXY
VANCOUVER, Oct. 16, 2012 /CNW/ - Alterra Power Corp. (TSX: AXY) is
pleased to announce it has entered into an agreement with Energy
Development Corporation (EDC), a Philippines-based global leader in the
geothermal power industry, for the development of Alterra's Mariposa
geothermal project in Chile and five of Alterra's Peruvian geothermal
concessions (the South American projects).
Under this agreement, EDC will have six months to carry out field work
and due diligence on the South American projects in order to elect to
advance them into a formal joint venture. If advanced, EDC will be
entitled to earn a 70% interest by funding the next $58.3 million in
project expenditures at Mariposa, and $8 million in project
expenditures on the five Peruvian concessions. Subsequent project
equity contributions and all economic sharing will be pro rata between
John Carson, Alterra's CEO, said, "This transaction represents a
significant step forward for our geothermal assets in Chile and Peru.
EDC is a strong partner with deep expertise, and we're pleased to be
making this next step together."
About Alterra's Mariposa and Peruvian Geothermal Assets
The Mariposa geothermal power project is located in the Andes mountains
of Chile and lies approximately 300 kilometres south of Santiago. 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 infrastructural work at Mariposa, including three
slim-hole wells and a 26 kilometre access road.
Alterra's early-stage geothermal projects in the southern volcanic belt
of Peru include the Loriscota, Crucero and Panejo concessions in the
north-eastern trend, and the Sara Sara and Tutupaca Norte concessions
in the south-western trend. Initial indications and Alterra's
exploration activities to date have supported the potential 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
About Alterra Power Corp.
Alterra Power Corp. is a leading global renewable energy company. We
operate six power plants totalling 567 MW of capacity, including two
geothermal facilities in Iceland, a geothermal plant in Nevada, British
Columbia's largest run-of-river hydro facilities and the province's
largest wind farm. Our 298 MW share of production capacity generates
approximately 1,400 GWh of clean power annually. We have an extensive
portfolio of exploration and development projects, a skilled
international team of developers, explorers, builders and operators and
the financial capacity to support our growth plans.
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, the fulfilment of all conditions precedent to the
obligation of the parties under the agreements, required consents and
third party approvals. This news release also contains statements with
respect to our plans to expand our operations, management's
expectations regarding our growth, business prospects and opportunities
and energy generation capacities. Such forward-looking information
reflects management's current beliefs and is based on information
currently available to management.