U.S. Geothermal Forms Exploration Joint Venture in Nevada
May 21 2008 - 8:30AM
PR Newswire (US)
BOISE, Idaho, May 21 /PRNewswire-FirstCall/ -- U.S. Geothermal Inc.
(Amex: HTM; TSX: GTH) (the "Company") announced today that it has
entered into a joint venture agreement with Gerlach Green Energy
LLC of Nevada ("GGE"). The target of the joint venture is the
exploration of the Gerlach geothermal system, which is located in
northwestern Nevada, at the town of Gerlach. The joint venture is
located near the Company's Granite Creek leases that were recently
acquired as part of the Empire geothermal power plant arrangement.
The JV agreement establishes a limited liability company named
Gerlach Geothermal LLC. The agreement provides for a 60 percent
U.S. Geothermal ownership interest in the joint venture by a
subsidiary of the Company and a 40 percent ownership interest by
GGE, with the Company expending $2,000,000 toward the project, of
which $300,000 is a property contribution in the form of a BLM
geothermal lease. GGE has contributed one BLM geothermal lease and
one private geothermal lease. These leases have all had previous
work including geophysical studies and drilling. The JV agreement
gives GGE an option to maintain its 40% ownership interest as
additional capital contributions are required. If GGE dilutes to
below a 10 percent interest, their ownership position in the joint
venture would be converted to a 10 percent net profits interest.
U.S. Geothermal will serve as the JV manager for the joint
venture's development activities. The combined property totals
3,615 acres (5.6 square miles) with 3,415 acres of BLM leases and
200 acres in a private property lease that contains the Great
Boiling Springs thermal feature. The geothermal system at Gerlach
is well known, with an extensive database from previous studies and
exploration drilling, that the Company believes has significant
exploration potential. Gerlach was ranked as the No. 3 top resource
in Nevada by the United States Geological Survey in Circular 726,
"Assessment of Geothermal Resources of the United States; 1975",
and has estimated resource temperatures from geochemical analysis
of 338 degrees F to 352 degrees F (USGS Circulars 726 and 790).
"Gerlach is a great exploration target in an area of known
geothermal activity that includes our producing San Emidio project
14 miles to the south, and our Granite Ranch project 5 miles to the
north," said Daniel Kunz, President and CEO. About U.S. Geothermal
Inc. U.S. Geothermal is a renewable energy development company that
is currently operating geothermal power plants at Raft River, Idaho
and San Emidio, Nevada. The Company is also conducting exploration
activities at Neal Hot Springs, Oregon. Please visit our Website
at: http://www.usgeothermal.com/ The information provided in this
news release contains forward-looking statements within the
definition of the Safe Harbor provisions of the US Private
Securities Litigation Reform Act of 1995 and under applicable
Canadian legislation, including statements regarding the
anticipated exploration potential of the joint venture property and
the timing and amount of anticipated expenditures. These statements
are based on US Geothermal Inc.'s current expectations and beliefs
and are subject to a number of risks and uncertainties that can
cause actual results to differ materially from those described in
forward looking statements, including the results and schedule of
explorations activities at the joint venture property, among
others. Forward-looking statements are based on management's
expectations, beliefs and opinions on the date the statements are
made. U.S. Geothermal Inc. assumes no obligation to update
forward-looking statements if management's expectations, beliefs,
or opinions, or other factors, should change. The TSX and AMEX do
not accept responsibility for the adequacy of this release.
DATASOURCE: U.S. Geothermal Inc. CONTACT: Saf Dhillon, Investor
Relations of U.S. Geothermal Inc., 1-866-687-7059, or
+1-604-484-3031, fax, +1-604-688-9895, ; or Melinda Keckler of
Scott Peyron & Associates, Inc., +1-208-388-3800, fax,
+1-208-388-8898, , for U.S. Geothermal Inc. Web site:
http://www.usgeothermal.com/
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