Panax Geothermal secures A$5M funding facility from Deer Valley

Friday, November 09, 2012 by Bevis Yeo

With A$5 million in funding secured for the next three years, Panax is
 well placed to continue its efforts to finalise execution of
 Power Purchase Agreements and project financing for its
Indonesian geothermal projects

Panax Geothermal (ASX: PAX) has secured A$5 million to provide working capital for its corporate requirements and expenditures for its Indonesian geothermal projects over the next three years. 

The funds are provided under a Share Placement Facility provided by New York-based Deer Valley Management.

“We have been very pleased with the manner in which the negotiations of the transaction have been undertaken, and the ability of both Panax and Deer Valley to have finalised this transaction to a successful completion in recent days,” Panax managing director Kerry Parker said.

He added the facility would provide Panax with adequate working capital for corporate, liquidity, and project development purposes, during the coming period while Panax was continuing to finalise the securing of the final execution of the Power Purchase Agreements.

It will also enable the company to finalise its discussions and negotiations for required project financing for its Indonesian portfolio to a successful conclusion.

Share Placement Facility
Under the facility, Panax can draw on funds over the next three years and will issue Deer Valley shares at a 18.5% discount to the prevailing market price – as defined in the facility – in return.

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