In equity reoffer prospectus supplements filed June 16, U.S. Geothermal reports it has been offered a conditional commitment for a $102.2 million loan guarantee from the U.S. Department of Energy (“DOE”) to construct the planned 22-megawatt-net power plant in Eastern Oregon . The Neal Hot Springs development is the first geothermal project to be offered a conditional commitment for a loan guarantee under DOE’s Title XVII loan guarantee program, which was created by the Energy Policy Act of 2005. When issued, the loan guarantee will guarantee the loan to the Neal Hot Springs project from the U.S. Treasury’s Federal Financing Bank.
On Form 8-K filed 3/9/10, U.S. Geothermal announced it had entered into a $8.5 million private placement to further develop the Neal Hot Springs project, agreeing to issue 8,209,519 common shares to institutional investors at a price of $1.05 per share. Exhibits to the Form 8-K include the forms of securities purchase agreement, registration rights agreement and common stock purchase warrant. An amendment to the Form 8-K filed on 3/17/10 confirms the closing of the private placement, and identifies the institutional investors in Schedule A of the form of lock-up agreement that is included as an exhibit.
On December 11, Idacorp, Inc.’s Idaho Power Company subsidiary signed a 25-year power purchase agreement with U.S. Geothermal's wholly owned subsidiary, USG Oregon LLC, for up to 25 megawatts of power per year generated at the Neal Hot Springs project. U.S. Geothermal announced the PPA agreement in the Form 8-K filed 12/16/09, and the executed agreement was filed as Exhibit 10.43 to the company’s Form 10-Q filed 2/9/10.
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