Molten still on track to participate in Panax?s Indonesian projects

Australia-based Panax Geothermal Limited and Canada?s Molten Power Corporation have agreed on the extension of an agreement, providing the later with additional time to fulfill its funding commitment that would give it a 50% stake in Panax?s Indonesian projects.

Molten will now have until February 28, 2012 to fulfill the financing requirements, which Molten will contribute the first $10 million in exploration and development funds, a media statement said.

In return, the Canadian company will receive a 50% stake in the Panax subsidiary that holds Panax?s share in the projects, Panax Geothermal Singapore. Further exploration and development costs will be shared between the two parties on a 50-50 basis.

Panax Managing Director Kerry Parker said he was pleased that Molten had been able to easily see the long term economic value of the portfolio of projects that Panax had assembled in Indonesia.

As part of the agreement to the extension of time, Molten is seeking to bring forward a portion of the share placement in Panax in an effort for this to settle in January 2012. (romel)