May 02, 2013

EDC teams up with Aussie firm for Peru project


Energy Development Corp. (EDC), and Australian Hot Rock Ltd. have established a joint venture for the development of the Quellaapacheta geothermal project in Peru. the two companies established Geotermica Quellaapacheta Peru SAC for the project.

EDC owns 70 percent of the joint venture. EDC has paid Hot Rock an initial $400,000 which is refundable in the event that EDC withdraws from the project within six months from the transfer date. A final payment of $600,000 will be made 15 months from the transfer date if the project is pursued.

In its disclosure, EDC said Hot Rock agreed to transfer the Quellaapacheta project to Geotermica, a deal that was completed on April 15.

“As a result and as stated in the project agreements, EDC has paid Hot Rock an initial $400,000 which is refundable in the event that EDC withdraws from the project within six months from the transfer date. A final payment of $600,000 will be made 15 months from the transfer date if the project is pursued,” EDC said.