Alternative Earth Resources completes sale of geothermal projects to Ormat
VANCOUVER, Aug. 27, 2014 /CNW/ - Alternative Earth Resources Inc. ("AER") (TSX.V: AER) is pleased to announce that it has completed the sale of certain geothermal projects to Ormat Nevada Inc. ("Ormat") pursuant to a Purchase and Sale Agreement dated August 5, 2014 (the "Transaction"). Under the Transaction, Ormat also has the option, exercisable for 4 years, to acquire an additional geothermal lease. Shareholder approval for the Transaction was obtained at the annual and special meeting of shareholders held on August 22, 2014 (the "Meeting"). Details of the Transaction were previously disclosed in news releases dated June 11, 2014, and August 5, 2014.
The benefits to AER resulting from the Transaction include: receipt today of US$1,490,000 to the treasury; freeing up US$175,000 of cash that is currently pledged for geothermal well bonds; removal of liability for geothermal well abandonment costs of approximately US$450,000; and elimination on-going geothermal lease payment obligations.
About Alternative Earth Resources Inc.: AER is contemplating a change of its business focus from renewable energy to mineral resource development, a change which was also approved by shareholders at the Meeting. With its strong cash position and greatly reduced overhead, AER plans to pursue mining project acquisitions and/or merger opportunities.
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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