Perth based Xped (formerly Raya Group Limited) has announced that KS Orka Renewables Pte Ltd has provided an initial USD $700,000 in funding to PT Sokoria Geothermal Indonesia (SGI).
The funds are being used towards land tax and exploration duties needed to progress the 30 MW project and were provided under the terms of the Conditional Sale and Purchase Agreement (CSPA), whereby Orka would loan up to USD $1.5M for necessary working capital in the project. SGI has now remitted this first tranche of funds across to the relevant Indonesian government agencies and continues to work with Orka to fast track the Sokoria project.
As announced on 2nd August 2016, completion of the CSPA is subject to approval of PLN and BKPM (the Investment Coordinating Board of the Republic of Indonesia), the extension of the exploration period under the IPB held by SGI for one year, completion of the sale between Bakrie and Orka, all warranties remaining true and correct and there being no material adverse change in SGI. The sunset date for satisfaction of all conditions is 3 months after the execution date and failure to satisfy or waive all conditions by this date gives either party the right to terminate the CSPA.
Xped will be entitled to a payment up to USD $947,368 via payment commitment agreement between the parties.
