RENO, NV, Dec. 29 /CNW/ - Ram Power, Corp. (TSX:RPG) ("Ram Power"), through its wholly owned subsidiary Polaris Energy Nicaragua S.A. ("PENSA"), is pleased to announce the closing of a $77 million credit facility. The consortium of lenders includes Central American Bank for Economic Integration ("CABEI"), Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. ("FMO"), Export Development Canada ("EDC"), and Cordiant Capital ("Cordiant"). CABEI, FMO, and EDC acted as Co-Arrangers of the facilities. CABEI will act as Administrative Agent and FMO will act as Environmental Agent subject to approval by the project lenders.
The proceeds from this credit facility together with equity previously invested fully funds the completion of the San Jacinto-Tizate Phase 1 geothermal power project. The Phase I project will expand production of the existing 10 MW facility to 46 MW by April 2011. No additional drilling is required to achieve this expanded production. Phase II of the project will increase the 46 MW to 72 MW by the last quarter of 2011. Both phases of the project will use state-of-the-art single flash Fuji Turbine Generators. Upon completion of the Phase II project, the existing 10 MW power plant currently at the San Jacinto site will be decommissioned.
Mr. Huub Cornelissen, Director of Energy & Housing for FMO, said "We are very pleased with the transaction and partnership with PENSA and Ram Power, Corp. The San Jacinto project will provide for sustainable, low cost and base load renewable energy in Nicaragua. Financing the development of the San Jacinto project will further execute FMO's 'Access to Energy Strategy in Latin America.'"
Hezy Ram, CEO of Ram Power said "The San Jacinto-Tizate Phase I financing is a major step forward in Ram Power's delivery of clean geothermal energy to Nicaragua. We particularly want to thank the Phase I project lenders for their confidence in Ram Power's outstanding team, and especially our colleagues at PENSA, who continue to bring value to our shareholders while delivering to our customers a value driven product that is clean, cost effective, and reliable."
About Ram Power, Corp.
Ram Power is a renewable energy company based in Reno, Nevada engaged in the business of acquiring, exploring, developing and operating geothermal properties and has an interest in geothermal projects primarily in California, Nicaragua and Nevada.
This press release contains "forward-looking information" within the meaning of applicable securities laws including information regarding the business of Ram. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by this information. The statements in this press release are made as of the date of this release. Ram Power undertakes no obligation to update forward looking information, other than as required by law, or comment on analyses, expectations or statements made by third-parties in respect of Ram, or its financial or operating results or its securities.
SOURCE Polaris Infrastructure Inc.
For further information: For further information: Dan Schochet, Executive Vice President, Ram Power, Corp., Phone (775) 398-3703, Email: Dan@ram-power.com, www.ram-power.com