Panax secures funding to develop Indonesian geothermal project
Monday, August 8 2011 - 01:27 AM WIB
Molten will progressively earn 50% interest in Panax Singapore, based on expenditure being undertaken up to $10 million, following which each party will contribute to future costs on a 50-50 basis, Panax said in a statement.
It said funding from Molten will initially be invested into existing projects, but the companies will also work together to expand Panax?s portfolio of near-term geothermal development projects in Indonesia.
Panax and Molten will each seek to identify suitable projects for consideration and addition to the current portfolio of projects held by Panax Singapore.
To encourage Panax and Molten to work towards significant short and medium-term growth in Indonesia, a company (Panax or Molten) that identifies a new project which is accepted into the portfolio will earn a 5% free-carry interest in the project.
Both companies agreed to formalize a Shareholders Agreement within 90 days of the execution of the HOA.
During this period, Molten must have secured all required funding under the terms of the agreement, Panax said.
Panax is satisfied with the significant progress already made by Molten in this area. Molten has confirmed that it has concluded its technical and commercial due diligence to its satisfaction.
Panax Managing Director Kerry Parker said the proposed partnership with a company of Molten Power?s caliber would strengthen Panax?s position in Indonesia.
The funding will allow Panax to aggressively pursue the development of its highly prospective assets in Indonesia, with the potential to generate significant shareholder value.
?Molten and its people have significant experience in large-scale geothermal development activities across the world,? Parker said.
Molten President and CEO Gary Thompson said the company had been extremely impressed with Panax?s significant progress over the last 18 months in developing a quality Indonesian project portfolio, and building a strong strategic alliance with the listed Bakrie Group.
?We look forward to working very closely with Panax to progress its projects in Indonesia even further and bringing more projects into what is already a significantly advanced geothermal portfolio,? Thompson said. (alex)