TORONTO, April 6 /CNW Telbec/ - Capricorn Business Acquisitions Inc.
(TSX VENTURE: CAK.P) ("Capricorn"), a capital pool company which
entered into a previously announced letter agreement (the "Agreement")
with Caldera Geothermal Inc. ("Caldera", and together with Capricorn,
the "Parties") to acquire all of the issued and outstanding securities
of Caldera (the "Qualifying Transaction"), is pleased to announce that,
further to its press release dated December 9, 2010 and receipt of
approval from the TSX Venture Exchange, it has disbursed a secured
interest bearing loan in the principal amount of $225,000 to Caldera.
The loan bears simple interest at the rate equal to 8% per annum which
principal and accrued and unpaid interest are fully repayable on the
earlier of (i) June 30, 2011, (ii) the completion of the Qualifying
Transaction and (iii) the occurrence and continuance of an event of
default. The loan is secured by a first charge against the shares of
Geothermal Technical Partners Inc., Caldera's wholly owned operating
subsidiary (which holds all of Caldera's geothermal assets), and on
certain other assets of Caldera.
The Parties also agreed to further amend the Agreement to, among other
things, provide for a further extension of the exclusivity period from
March 31, 2011 to June 30, 2011 and to authorize Caldera to undertake
an unsecured convertible debenture financing in the aggregate principal
amount of up to $1,000,000.
Caldera intends to utilize the proceeds from the Capricorn loan and the
debenture financing for, among other things, land payments associated
with current properties of Caldera and new acquisitions made in the
recent Nevada geothermal lease auction, costs associated with the
Qualifying Transaction and general corporate and administrative
About Caldera Geothermal Inc.
Caldera is a geothermal exploration company focusing on the
identification of blind or underappreciated geothermal systems in order
to expand the geothermal resource base of the western U.S. The Great
Basin is attractive for geothermal development because it possesses
proven geothermal resources, it is close to large markets for renewable
power, and it benefits from a favourable regulatory environment.
Caldera uses an innovative exploration approach to discover new
geothermal systems while mitigating technical and financial risk in the
early and middle phases of resource identification. Caldera currently
controls 28,448 acres of geothermal leases in Nevada including its
McGee Mountain project in northwestern Nevada, for which Caldera was
awarded a $1.6 million Department of Energy grant to further develop
About Capricorn Business Acquisitions Inc.
Capricorn is a TSX Venture Exchange listed company and classified as a
Capital Pool Company as defined in the TSX Venture Exchange Policy 2.4.
Completion of the Qualifying Transaction is subject to a number of
conditions including, but not limited to, Exchange acceptance and if
applicable pursuant to Exchange Requirements, majority of the minority
shareholder approval. Where applicable, the Qualifying Transaction
cannot close until the required shareholder approval is obtained. There
can be no assurance that the Qualifying Transaction will be completed
as proposed, or at all.
Investors are cautioned that, except as disclosed in the or filing
statement to be prepared in connection with the transaction, any
information released or received with respect to the transaction may
not be accurate or complete and should not be relied upon. Trading in
the securities of a capital pool company should be considered highly
The TSX Venture Exchange Inc. has in no way passed upon the merits of
the proposed transaction and has neither approved nor disapproved the
contents of this press release.
Neither TSX Venture Exchange Inc. nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange
Inc.) accepts responsibility for the adequacy or accuracy of this
SOURCE Capricorn Business Acquision Inc.
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