Provo, Utah [RenewableEnergyAccess.com] Raser Technologies, Inc. recently announced that it emerged as the successful bidder for the geothermal rights on four parcels of Federal property totaling approximately 15,000 acres in central Nevada.Last week, the Bureau of Land Management (BLM) conducted a competitive auction of lease parcels for geothermal energy resources on federal public lands in Nevada and California covering approximately 125,000 acres, 98% of which were Nevada properties. Raser won the bidding on 15,325 acres with a total price of approximately $620,000, or $40 per acre.
The term of the BLM geothermal leases is ten years with renewal rights for up to forty years beyond the primary term if the lessee is producing or using geothermal resources in commercial quantities.
Brent M. Cook, Raser’s CEO, stated, “We are thrilled with the results of this competitive process. We secured very attractive Nevada properties familiar to us and our geologists at $40 per acre where the average rate for all of the other auctioned Nevada properties was $102 per acre.”
Funding for the $620,000 payment comprised of lease purchase, first year rentals and fees will be sourced from the proceeds of the exercise of warrants issued in connection with the private equity placement that Raser completed in March 2007. On August 9, 2007, all of the requirements under the Warrant agreement were met, allowing Raser to exercise its call provision requiring the Warrant holders to either exercise their Warrants at $6.05 per Warrant or allow Raser to cancel the Warrants.
Raser has exercised its call provision. Warrant holders have until August 20, 2007 to notify Raser of their intent to exercise their Warrants. To date, Raser has received notice from Warrant holders that at least 94% of the outstanding warrants will be exercised amounting to at least $5.9 million in proceeds to Raser. If all of the other Warrant holders also give notice of exercise, the total proceeds to Raser will be $6.3 million.