Continental Ridge power development agreement accepted
Continental Ridge Resources Inc KRI
Shares issued 6,515,002 2001-08-17 close $0.15
Wednesday Aug 22 2001 News Release
Mr. Brian Fairbank reports
Continental Ridge has received conditional approval from the Canadian Venture Exchange of an agreement with Blue Mountain Power Company Inc. whereby Continental Ridge is granted an exclusive option to acquire a 60-per-cent interest in the Blue Mountain geothermal development project in north-central Nevada (see news in Stockwatch May 30, 2001). Continental Ridge will be the project operator.
Continental Ridge must pay $50,000 (U.S.), incur $1.7-million (U.S.) in exploration expenditures and issue 600,000 shares to BMPC over a three-year period to be vested. The first 200,000 shares have been issued. The remaining 400,000 shares will be issued in two equal instalments over the next two years with each issue subject to the approval of independent board members of Continental Ridge and acceptance by the CDNX.
The Blue Mountain geothermal development project has the potential to produce competitively priced, "renewable" electric power for target markets in northern Nevada, California and the Pacific Northwest. Geothermal plants currently supply about 12 per cent of Nevada's electrical demand demonstrating the viability of geothermal turbine technology. According to industry studies, Nevada has the potential to produce an additional 2,500 megawatts of geothermal power. To illustrate the economic potential, a 100 MW geothermal power plant at the Blue Mountain geothermal site would generate 832 million kilowatt-hours (kWh) of energy per year yielding gross sales of $70-million (U.S.) per year based on a price of eight cents/kWh for electricity.
Test drilling at the Blue Mountain site will resume in September, 2001, under a cost-sharing contract between the U.S. Department of Energy and Noramex Corp., a U.S. subsidiary of Blue Mountain Power Company Inc. A 700-metre well to obtain resource and engineering data is projected to cost $450,000 (U.S.). Continental Ridge will contribute the Noramex cost share of $90,000 (U.S.) (20 per cent). The U.S. Department of Energy's cost share is $360,000 (U.S.) (80 per cent).
Private placement completed
The company has completed a private placement of 425,000 special warrants at 18 cents per special warrant to Frank Diegmann of Pasadena, Calif. Each special warrant is convertible into one common share and one-half of a common share purchase warrant entitling the holder to purchase one additional common share at 25 cents per share for a period of one year. Upon conversion of the special warrants, Mr. Diegmann will hold approximately 1,983,333 common shares or 26.5 per cent of the issued and outstanding shares of the company. Mr. Diegmann has confirmed that the securities were acquired for investment purposes. |
