Australian developer Panax Geothermal is raising $1.6 million in a placement to fund ongoing development of its projects in Indonesia until it has finalized its Power Purchasing Agreements and project financing discussions.
Reported this morning, Australian Panax Geothermal (ASX: PAX) “is raising A$1.6 million to fund ongoing development of its geothermal projects in Indonesia until it finalises Power Purchase Agreements and project financing discussions.
The issue of up to 228.27 million new shares priced at A$0.007 each, is partially underwritten by Patersons Securities. Patersons will underwrite A$1.1 million of the issue.
Proceeds from the rights issue will be used for legal and associated costs of finalising power purchase agreements the Sokoria and Dairi Prime geothermal projects in Flores and North Sumatra, each with planned electricity generation capacity of 30 megawatts.
It will also pay for and associated costs of finalising Power Purchase Agreements, site infrastructure, environmental studies, transmission line route analysis and for general working capital purposes. The Power Purchase Agreements will allow allow Panax and its local partner PT Bakrie Power to finalise required project financing.
Panax is also earning a 35% stake in Bakrie’s Ngebel which could see an increase in initial capacity to 220 megawatts from the original phased 165 megawatts due to the Indonesian demand for secure renewable energy.
The renounceable pro-rata entitlement offer will allow eligible shareholder to subscribe for one new share for every 2 shares held. Each 2 new shares will come with a free attaching option exerciseable at A$0.01 on or before December 31, 2014.
It opens on July 17 and closes on August 3 with new shares allotted on August 14 and trading in the new shares starting on August 15.”
Source: Proactive Investors via MenaFN