update: Vancouver, B.C. (April 1, 2013), Nevada Geothermal Power Inc. (“NGP” or “the Company”) (TSX.V: NGP) announces that the Company and funds managed by EIG Global Energy Partners (collectively “EIG”), the mezzanine lender for the Blue Mountain Geothermal Project, closed the Equity and Collateral Transfer Agreement on March 28, 2013 (refer to News Release dated January 16, 2013).
EIG has accepted the transfer of ownership of NGP Blue Mountain Holdco LLC (“BM Holdco”) in full satisfaction of all amounts owing under BM Holdco’s loan agreement with EIG. NGP received $500,000 in satisfaction of a current account receivable from BM Holdco.
Nevada Geothermal Operating Company LLC (Opco) will continue as project operator of the Faulkner 1 geothermal power plant during a cooperative transition period of up to twelve months. EIG may provide written notice at any time during the transition period, electing to replace the operator or purchase Opco for a nominal amount plus the value of the then existing working capital.
Effective April 2, 2013, the Company will change its name to Alternative Earth Resources Inc. (“Alternative Earth”), and complete a five for one share consolidation (refer to news release dated March 27, 2013). Alternative Earth retains its ownership interests in four geothermal development properties in the western US (Crump Geyser, New Truckhaven, Pumpernickel and North Valley).