Geodynamics Limited (GDY), as operator of the Innamincka „Deeps’ Joint Venture, advises that the joint venture partners have agreed to the sale of Rig 200 to Australian- based company Pangaea Resources Pty Ltd for a total cash consideration of A$21 million. Under the terms of the agreement the Sale is not due to complete until 30 September 2012. During this period Pangaea may elect to withdraw from the Sale. Pangaea has agreed to pay the joint venture a deposit of A$1 million that will be forfeited should Pangaea elect to withdraw from the Sale.
Geodynamics’ Chief Executive Officer, Geoff Ward said, “Geodynamics is very pleased to have secured the sale of this rig in difficult market conditions. The receipt of these funds will bolster and strengthen the company‟s balance sheet as part of the capital management initiatives the company has undertaken over the past year, including the sale of Rig 100, the settlement of the Habanero 3 insurance claim, the successful renegotiation of terms of the Renewable Energy Demonstration Program (REDP) funding grant and the capital raising program undertaken in January.”
Geodynamics is the leading Australian geothermal exploration and development company. possesses some of the best geothermal resources in the world and is rapidly developing technology to exploit the resource. Geothermal energy has the potential to be a critical element of Australia’s future power generation and Geodynamics is at the forefront of development.