Geothermal Resources rattles tin Tuesday, 19 May 2009
HOT rocks explorer Geothermal Resources is turning to shareholders to help fund the company’s ongoing deep drilling at the Frome project in South Australia.
The company is offering shareholders who were on its register on May 18, and whose registered addresses are in Australia or New Zealand, up to $A15,000 worth of shares at 32c each, representing an 18% discount to the average closing price for the past five days.
The company said it could issue a maximum of 9.9 million shares under the terms of a waiver granted by the Australian Securities Exchange.
Funds from the raising will be first used to match the remaining $1 million in funds from the government’s Renewable Energy Development Initiative grant for the Frome drilling, while remaining funds will be used to select drilling targets in the Crower project.
Geothermal Resources chairman Bob Johnson said there were potentially large volumes of hot water stored in sandstone aquifers at Crower and the company aimed to test whether these resources could be tapped.
“Major power lines crossing the project area mean that any discoveries could be rapidly commercialised,” he added.
GHT Price at posting:
38.0¢ Sentiment: LT Buy Disclosure: Not Held
