Panax raising capital for geothermal projects in Indonesia

Australia-listed firm Panax Geothermal Limited plans to raise approximately A$3.7 million through a rights issue to finance its geothermal projects in Indonesia.

The company announced on Tuesday that the proceeds from the rights issue, in addition to its existing cash reserves, will be used to advance its portfolio of near-term geothermal development opportunities in Indonesia, and for working capital purposes.

Over the past 18 months, Panax has established an Alliance Agreement with PT Bakrie Power, which is part of the Bakrie Group, to work co-operatively on a number of geothermal development and production projects in Indonesia.

Panax?s current portfolio of geothermal development opportunities has the capacity to produce geothermal electricity in excess of 300 megawatts, with approximately 165 megawatts net to Panax.

The Sokoria, Ngebel and Dairi Prima projects are underpinned by agreed, commercially attractive power tariffs with agreed power offtake agreements, according to the company. (romel)