Nevada Geothermal Power Inc. announces reorganization plans
VANCOUVER, Jan. 29, 2013 /PRNewswire/ – Nevada Geothermal Power Inc. (the “Company”) (TSX.V: NGP) is pleased to announce that it will implement a reorganization plan
that was approved earlier by shareholders at the Annual and Special
General Meeting on July 24, 2012. In addition, the Company will explore
opportunities for asset sales, project development, acquisitions and
potential mergers.
It is proposed that the Company name will be changed to “Alternative
Earth Resources Inc.” upon completion of the reorganization plan, and
there will be approximately 24,482,000 shares outstanding following a 1
for 5 reverse split of the stock. Completion of the reorganization is
subject to the acceptance of the TSX Venture Exchange.
On closing of the Blue Mountain equity transfer agreement as announced
January 16, 2013, the Company will have ownership interests in four
geothermal development properties in the western US (Crump Geyser, New
Truckhaven, Pumpernickel and North Valley) and no long-term
liabilities. The Company will not have an ownership interest in the
Blue Mountain project, however it will operate the Blue Mountain
geothermal power plant through a transition period up to 12 months. The
Company expects to have sufficient cash and income to cover project
costs, lease payments, staffing and corporate overhead beyond the end
of the transition period.
The Company will seek buyers and/or joint venture partners for its
advanced-stage geothermal projects. New tax legislation passed by the
US Senate and Congress in early January, 2013 should provide
significant Production Tax Credit (“PTC”) and Investment Tax Credit
(“ITC”) incentives for prospective partners. Under old rules,
qualifying renewable energy projects needed to have started
construction in 2012 with an additional requirement to be “placed in
service” by January 1, 2014. The fixed completion date requirement
caused several projects that were underway, like the Company’s Crump
project with Ormat, to drop out after having started construction.
Under new rules, geothermal projects will be eligible for the PTC or a
30% ITC on certain project costs if project construction commences
before January 1, 2014. Significantly, there is no preset date for a
project to be placed in service once construction starts, which helps
reduce project financing risk. Project sponsors or financing partners
must choose between the PTC, currently valued at $22/MWh and applied
with an inflation index through the first ten years of production, or
the 30% ITC. The Company has completed planning under which its Crump
Geyser, New Truckhaven and Pumpernickel projects can be ready for
development drilling or start of construction in 2013.
Brian Fairbank, President & CEO said “the Company looks forward to new
challenges and opportunities armed with valuable project development
and operating experience.”
About Nevada Geothermal Power Inc.:
Nevada Geothermal Power Inc. is an experienced renewable energy producer
focusing on the development of CLEAN electrical power from high
temperature geothermal resources in the United States. NGP currently
owns a 100% leasehold interest in several properties in Nevada and
California, and a 50% interest in Crump Geyser, in Oregon. These properties are at different levels of exploration
and development.
This Press Release contains certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995.
We have tried, whenever possible, to identify these forward-looking
statements using words such as “anticipates,” “believes,” “estimates,”
“expects,” “plans,” “intends,” “potential” and similar expressions.
These statements reflect our current belief and are based upon
currently available information. Accordingly, such forward-looking
statements involve known and unknown risks, uncertainties and other
factors which could cause the Company’s actual results, performance or
achievements to differ materially from those expressed in or implied by
such statements. We undertake no obligation to update or advise in the
event of any change, addition, or alteration to the information catered
in this Press Release including such forward-looking statements.
Neither the 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.
Nevada Geothermal Power Inc.
Brian D. Fairbank, P. Eng. President & CEO
Telephone: 604-688-1553
Toll Free: 866-688-0808
Email: bfairbank@nevadageothermal.com
Investor Inquiries:
Telephone: 604-688-1553
Toll Free: 866-688-0808
Email: info@nevadageothermal.com
SOURCE Nevada Geothermal Power Inc.
