RENO, NEVADA--(Marketwired - Jun 4, 2013) - Ram Power, Corp. (
Execution of Drilling Contract
The Company executed a drilling contract with ThermaSource Inc., for the remediation drilling program scheduled to begin in early July 2013. The remediation program, expected to be complete by late October 2013, calls for the refurbishment of two existing production wells with a targeted increase in steam availability of approximately 70-110 tonnes/hour, or approximately 9 to 14 MW of additional net capacity. Any increased steam production from the remediation program would be available for production use the latter part of the year. The Company, together with Sinclair Knight Merz, the Company's resource consultant, finalized the remediation plan based on the production performance of the Project during the first several months of operations.
Amendment to Phase II Credit Facility
The Company reached an agreement with its project lenders syndicate, led by the International Finance Corporation (the "Lenders"), to amend its Phase II Credit Agreement for Project. The amendment extends the date for conversion of the construction loan to a term loan from June 2, 2013 to June 29, 2013 and allows for the funding of the remediation drilling program beginning in early July from the Project's major maintenance reserves established under the Phase I and II Credit Facilities. During this period, the Company and the Lenders will continue to work together to satisfy certain conditions precedent associated with the loan documents for conversion.
Antony Mitchell, Executive Chairman of the Company, stated, "We continue to work diligently with the Phase II lending syndicate on finalizing the conditions precedent for the term-out conversion of the Phase II Credit Facility, and look forward to beginning our resource remediation efforts next month."
This press release contains "forward-looking information" within the meaning of applicable securities laws including information regarding the business of Ram Power. Readers are cautioned not to place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by this information. The statements in this press release are made as of the date of this release. Ram Power undertakes no obligation to update forward-looking information, other than as required by law, or comment on analyses, expectations or statements made by third parties in respect of Ram Power, or its financial or operating results or its securities.