Renewables

Four North American geothermal companies to become one

20 July 2009– Four geothermal firms said they plan to join as a single company to raise project development funds.

Canadian-based Polaris Geothermal Inc, Western GeoPower Corp and GTO Resources Inc, along with Ram Power, a private U.S.-based geothermal company, said they plan to combine operations and try to raise C$100 million ($90 million).

The money will be raised in a private placement that will give purchasers shares in the combined company. After a 10-for-one share consolidation, subscription receipts are expected to be offered at C$3 a GTO share.

Polaris shareholders will have the majority stake at 54.1 percent. Western will own 29.2 percent, Ram 15.4 percent and GTO 1.3 percent.

In other news, Magma Energy Corp listed on the Toronto Stock Exchange this month after raising C$100 million in an initial public offering that was three times oversubscribed.