Greenearth Energy aims to get USD 652,000 from share offering

Oct 7, 2013 - Australian geothermal firm Greenearth Energy Ltd (ASX:GER) today said it would launch a private placement of 27.7 million ordinary shares, seeking to raise AUD 693,000 (USD 652,000/EUR 480,000).

The company has already received commitments from professional and sophisticated investors for the offering, which will account for about 23.35% of its issued ordinary share capital. It will allocate the raised funds to back the expansion of its industrial energy efficiency operations and replenish general working capital.

Greenearth Energy will sell the stock at at price of AUD 0.025 apiece. Settlement of the transaction and issue of shares for over-allotments is seen to take place on October 14. The deal will not need approval from the company’s shareholders, it noted.

The Australian firm is currently working on a 12-MW Geelong demonstration geothermal project in the state of Victoria. Greenearth’s plan envisages the drilling of a well to prove the geothermal resource and the construction of a 12-MW demonstration plant. If that pilot installation is successful the company intends to build a commercial-scale plant.

(AUD 1.0 = USD 0.941/EUR 0.693)

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