EDC gets shareholder nod for foreign projects

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The country’s largest geothermal producer, Energy Development Corp., together with Canada-based Alterra Power Corp., has secured shareholders agreement for their four projects in Chile and Peru.

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This is after EDC executed a joint agreement with Alterra in May for the exploration and development of geothermal projects in Peru namely the Tutupaca Norte, Loriscota and Crucero projects, collectively known as Peruvian Projects, as well as the Mariposa geothermal project in Chile.

Under the shareholders agreement for the Mariposa Project, EDC, through its wholly-owned subsidiary in Chile, will acquire a 70 percent interest in Compañía De Energia (Enerco), an Alterra subsidiary in Chile that owns the Mariposa Project.

Alterra will continue to hold a 30 percent interest in Enerco through its wholly-owned subsidiary Magma Energy Chile Limitada, which is subject to the terms of the agreement for the Mariposa Project.

Under the terms of the agreement for the Peruvian Project, a new project company will be incorporated in Peru and this firm will be responsible for developing each of the three projects.

Each Peruvian Project company will be 70- percent owned by EDC, through its wholly-owned subsidiary in Peru, and 30 percent owned by Magma Energia Geotermica Peru S.A., a wholly-owned subsidiary of Alterra.

EDC’s continued participation in the Peruvian Projects and the Mariposa Project is subject to its resource assessment of each of the projects, in accordance with the terms of the project agreements.

In May, EDC officially partnered with Alterra for the aforementioned project.

The agreement, according to EDC’s previous disclosure, sets the framework and main commercial principles for the company’s potential acquisition of a 70-percent interest in each of the four projects.

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