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| | Wed Aug 1, 2007
Secures Bridge Financing of US$20 Million with Glitnir Bank for Blue Moutain's Faulkner I Project
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| | VANCOUVER, B.C. (August 1, 2007) -- Nevada Geothermal Power Inc. (NGP) (TSX-V: NGP, OTC-BB: NGLPF) today announced that it has signed a Commitment Letter and Term Sheet for a Bridge Loan Facility with Glitnir Bank ("Glitnir").
Glitnir will extend a Bridge Loan Facility of up to US$20 Million for the development of the 35 MW Blue Mountain, Faulkner I project in Nevada. The closing of the Loan is subject to receipt of a resource report from GeothermEx, Inc. The proceeds of the loan will be used to fund the continuous development of the Faulkner I geothermal power plant, geothermal well field, related infrastructure and development costs.
Subject to customary conditions precedent, Glitnir will make loan proceeds of up to US$20 Million available to a project level single purpose entity holding the Blue Mountain Faulkner I assets. This Bridge Facility will be available prior to having all construction permits for the project obtained and will be repaid by the Construction Loan provided by Morgan Stanley. Glitnir retains an option to participate in the Construction Loan.
Upon closing of the loan, NGP shall pay a success fee to Markus K. Christen. NGP retained Mr. Christen as its financial advisor in connection with arranging financing for development of the Blue Mountain Faulkner I Power Plant. Mr. Christen is a director of NGP and has considerable expertise and experience with structured financing related to renewable energy projects.
"We are delighted to have secured the Bridge Loan for the development and pre-construction phase for the Blue Mountain power project with an experienced geothermal investor like the Glitnir Bank. The Bridge Loan will provide liquidity to continue our drilling and development program without interruption prior to having the entire project fully permitted, and perfectly correlates with the construction loan provided by Morgan Stanley. Nevada Geothermal now has solid financial backing to move its flagship project through to production." said Brian Fairbank, President and Chief Executive Officer.
"We are excited to support NGP on this promising project and take a new step in growing our North American platform. As the world's leading financial institution within geothermal energy we see great opportunities in the project and for geothermal in the US. This is an exciting project for our North America and Global Energy Teams," said Magnus Bjarnason, Executive Vice President, International Banking at Glitnir Bank.
"In its approach to financing Sustainable Energy, Glitnir Bank emphasizes geothermal especially. We strongly believe in the potential of geothermal energy in the United States; financing Nevada Geothermal is an important step on the path to the utilisation of this green energy and we are proud to be involved," said Arni Magnusson, Managing Director and Head of Glitnir's Global Sustainable Energy Group.
Blue Mountain, located 30 kilometers (20 miles) west of the town of Winnemucca, Nevada, is ideally situated for development. The proposed Faulkner I geothermal plant will require a 20-mile long transmission line over relatively flat, undeveloped desert land to a connection point located on the utility's (Sierra Pacific) 120kV-transmission line north of Mill City, Nevada. Extensive environmental studies have been completed along the power line route and around the proposed power plant site and an environmental assessment is in process by the Bureau of Land Management (BLM).
The electric power is to be sold under a 20-year Power Purchase Agreement to the Nevada Power Company, for up to 35 MW of geothermal power. Phase 1 at Blue Mountain is expected to commence power generation in late 2009.
About Glitnir Bank:
The financial group Glitnir offers universal banking and financial services. Glitnir is a leading niche player in three global industry segments; seafood/food, sustainable energy, and offshore services vessels. Services include retail, corporate and investment banking, stock trade/brokerage and capital management. The Glitnir group operates in Iceland, Norway, Sweden, Denmark, Finland, the UK, Luxembourg, Russia, Canada and China and will open a US subsidiary in New York in September 2007. Glitnir is listed on the Icelandic Stock Exchange. For more information: www.glitnirbank.com and about our global energy focus: http://www.glitnir.is/English/Business/Energy/.
About Nevada Geothermal Power Inc.:
Nevada Geothermal Power Inc. is a renewable energy company developing geothermal projects in the United States to provide electrical energy that is clean, efficient and sustainable. NGP is committed to the geothermal industry and currently owns a 100% leasehold interest in four properties: Blue Mountain, Pumpernickel, Black Warrior, all located in Nevada and Crump Geyser in Oregon. These properties are at different levels of exploration and development. NGP estimates a potential of approximately 150 MW to over 200 MW from the current leaseholds.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from registration is available.
This Press Release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We have tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "expects," "plans," "intends," "potential" and similar expressions. These statements reflect our current belief and are based upon currently available information. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. We undertake no obligation to update or advise in the event of any change, addition, or alteration to the information catered in this Press Release including such forward-looking statements.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Nevada Geothermal Power Inc.
Brian D. Fairbank, P. Eng.
President & CEO
www.nevadageothermal.com
Investor Inquiries
Shelley Kirk
Nevada Geothermal Power Inc.
Telephone: 604-688-1553 X118
Toll Free: 866-688-0808 X118
Email: sfkirk@nevadageothermal.com
Tracy Weslosky or Fred Cowans
Managing Partners
Pro-Edge Consultants Inc.
Telephone: (416) 581-0177
Toll Free: (866) 544-9622 or
info@pro-edge.com
www.pro-edge.com
Glitnir
Bjørn Richard Johansen
Managing Director, Corporate Communication
Telephone: +47-47 800 100
E-mail: brj@glitnir.no
www.glitnirbank.com |
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