Alternative Earth Resources to Sell Project Assets to Ormat
VANCOUVER, June 11, 2014 /CNW/ - Alternative Earth Resources Inc. ("AER") (TSX.V: AER) is pleased to announce that it has signed a non-binding Letter of Intent (LOI) with Ormat Nevada Inc. ("Ormat"), whereby Ormat has the right, following a due diligence review, to purchase all of AER's Crump Geyser (50% interest), North Valley and New Truckhaven geothermal project assets for a cash payment of US$1,500,000. AER has received a $50,000 deposit in respect of this LOI.
A definitive Asset Sale Agreement ("ASA"), to replace the LOI by June 30, 2014, is subject to the approval of the Board of Directors of AER and Ormat, the approval of the shareholders of AER at a Special Meeting to be in late July, 2014, and the acceptance of the TSX Venture Exchange. The ASA, if approved, is expected to close on or about July 31, 2014.
In addition to project assets covered under the ASA, AER had cash and cash equivalent assets of US$1.2 million as of March 31, 2014. The asset sale transaction will free up additional cash of US$175,000 currently pledged for project drilling bonds and will remove a liability for project well abandonment costs of approximately US$450,000.
The Company intends to pursue other opportunities in the mineral resource development sector.
About Alternative Earth Resources Inc.: Alternative Earth Resources Inc. is an experienced renewable energy developer focusing on the development of CLEAN electrical power from high temperature geothermal resources in the United States. The Company owns geothermal leaseholds comprising the New Truckhaven property in Imperial Valley, California; the North Valley property in northern Nevada; and a 50% interest in the Crump Geyser property which it owns with Ormat Nevada Inc. in Lake County, Oregon. These properties, at different stages of exploration and development, cover aggregate inferred resources totaling approximately 200 MW.
This Press Release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We have tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "expects," "plans," "intends," "potential" and similar expressions. These statements reflect our current belief and are based upon currently available information. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. We undertake no obligation to update or advise in the event of any change, addition, or alteration to the information catered in this Press Release including such forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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