Wasabi completes buy of option for 50% in Turkish geothermal project

Aug 10, 2012 - Australian clean energy investor Wasabi Energy Ltd (ASX:WAS, LON:WAS) today said its wholly-owned unit Imparator Enerji had completed the purchase of an option to take a 50% stake in the Tuzla geothermal power project in Turkey.

The project includes a power plant with a capacity of 7.5 MW and opportunities for additional development.

The Wasabi unit has finalised the acquisition of the option after making a final payment of USD 2.65 million (EUR 2.16m). According to a previous announcement, the sum for the purchase and exercise of the option is USD 11.75 million, including a USD-5-million loan note to be issued by Wasabi.

If the Australian company exercises the option, it will develop the project through a 50/50 joint venture with Izmir, Turkey-based power producer Egenda Ege Enerji Uretim AS, the current project operator. The option can be exercised until December next year and Wasabi will need to pay about USD 3.6 million for the exercise.

Wasabi says that according to data from historical studies, the Tuzla project has geothermal power potential of up to 80 MW. Imparator Enerji has started developing a pre-feasibility study for a first-stage build-out of 14 MW to 17.5 MW, which could use Wasabi's Kalina Cycle technology.

(USD 1.0 = EUR 0.815)

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