Panax secures funding package with Deer Valley

By Harry Roy Gunawan

ASX-listed Panax Geothermal Limited (Panax) said that it had secured a share placement facility agreement with the New York based Deer Valley Management, LLC (Deer Valley) to provide a working capital facility of AUD$ 5 million, capable of being drawn upon by Panax over the next three years.

Panax considers the nominated discount to market price in the Facility to be a reasonable discount to the prevailing market price for share placements in the current financial market.

?We are pleased to have secured the Share Placement Facility with the New York based Deer Valley Group. We have been very pleased with the manner in which the negotiations of the transaction have been undertaken, and the ability of both Panax and Deer Valley to have finalized this transaction to a successful completion in recent days,? Panax Managing Director Kerry Parker said in a press statement on Thursday.

Parker went on to state that the Facility with the Deer Valley Group would provide Panax with adequate working capital for corporate liquidity, and project development purposes during the coming period while Panax was continuing to finalize the securing of the final execution of the Power Purchase Agreements (PPA) for its advanced portfolio of near-term development opportunities in Indonesia, and to enable Panax to finalize its discussions and negotiations for required project financing for its Indonesian portfolio to a successful conclusion.

?We are excited to enter into this financing agreement with Panax as it marks our first foray into the ASX and we are pleased that Panax is the company we have chosen to make that foray. We look forward to a long relationship with Panax,? said Timothy W. Doede, Portfolio Manager of Deer Valley.

Editing by Benget Besalicto Tnb.