The Board of Directors of geothermal power developer Ram Power (TSX: RPG) has formed a Mergers and Acquisitions Committee to explore and evaluate strategic alternatives to enhance shareholder value.
The committee was tasked with exploring, among other things, opportunities to increase operational efficiencies, strategic partnerships, asset sale opportunities and asset purchase opportunities. “The Company has received a number of proposals from interested third parties and continues to work with its stakeholders and potential investors to bring a transaction to conclusion,” said Ram Power in a March 30 financial report.
Ram Power is a renewable energy company engaged in the acquisition, exploration, development and operation of geothermal energy projects, with an operating project in Nicaragua and development projects in Nicaragua, the U.S. and Canada. The company’s portfolio of geothermal exploration properties is primarily comprised of the Casita, Orita and Clayton Valley projects. These properties were acquired from a variety of sources, including through governmental concessions and U.S. Bureau of Land Management (BLM) lease auctions.
- The Casita project is located in northwest Nicaragua. During the second quarter 2014, the environmental permit was finalized and submitted to the government authority for its approval and the impact studies were submitted for review and approval to the Nicaraguan and Regional Authorities of the Energy Sector.
- The Orita project is located in Imperial County, California, close to the Salton Sea geothermal area. The company does not have future development plans for the Orita project and is evaluating its options for selling the project.
- The Clayton Valley geothermal project is located in Esmeralda County, Nevada. The company does not have future development plans for the Clayton Valley project and is evaluating its options for selling it. The company’s letter of credit with NV Energy in the amount of $1.3 million, previously held in restricted cash, was released in April 2014 and was used for working capital purposes.
The company’s portfolio of geothermal exploration properties also consists of Delcer Butte, Reese River and Barren Hills in Nevada, New River and Keystone in Southern California, and South Meager Creek in British Columbia. The company is in the process of selling and/or disposing of all of its non-core assets to focus on maximizing the cash flow and profitability of the company’s producing assets in Nicaragua. The Geysers project is located in Sonoma County, California. The company completed the sale of the Geysers project in April 2014. The sale included all of the land and mineral rights associated with the project.