KRI-v...in the news:
Continental Ridge to acquire Blue Mountain Power
News Release
Mr. Jack Milligan reports
ACQUISITION OF BLUE MOUNTAIN POWER COMPANY INC.
Continental Ridge Resources has entered into a letter agreement with Blue
Mountain Power Company Inc. (BMP) whereby the company shall acquire 100 per
cent of the issued and outstanding shares of BMP from the BMP shareholders.
BMP, a private British Columbia company, holds a 100-per-cent interest in
certain geothermal leases located in Humboldt county, Nevada, known as the
Blue Mountain geothermal project. Continental Ridge currently holds an
option to earn up to a 60-per-cent interest in the Blue Mountain geothermal
project pursuant to an agreement dated June 19, 2001, as amended, by
incurring $1.65-million (U.S.) of exploration expenditures on the property,
and making certain cash and share payments.
Under the terms of the letter agreement, the company has agreed to acquire
all of the shares of BMP, and thereby 100 per cent of the Blue Mountain
geothermal project, in consideration for the issuance of 5.5 million common
shares in the capital of the company to the BMP shareholders. The
transaction shares shall be subject to a four-month hold period and escrow
restrictions as determined by the TSX Venture Exchange. Brian D. Fairbank,
the president of the company, is also the controlling shareholder of BMP.
The transaction is a related party transaction subject to execution of a
formal share exchange agreement, approval of the shareholders of BMP and of
the company at an extraordinary meeting, and acceptance of the exchange.
At the Blue Mountain geothermal project, the DeepBlue No. 1 discovery well,
drilled earlier this year with cost sharing by the United States Department
of Energy, demonstrated resource temperatures of approximately 150 degrees
C (300 degrees F) from 470 metres (1,530 feet) to the bottom of the hole at
672 metres (2,205 feet). A second 1,000-metre (3,280-foot) deep test well,
to be drilled one kilometre northeast DeepBlue No. 1 at a cost of $824,000
(U.S.), has been approved for $659,000 (U.S.) in financing from the
Department of Energy. Continental Ridge's objective is to develop an
initial 30-megawatt power plant at the Blue Mountain geothermal site.
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