Space Con’s agreement with Raya has the backing of large Korean institutional banks who are seeking to provide the necessary debt / project financing aspects for the development of the Indonesian geothermal portfolio.
Raya will maintain a 20% free carry interest in each of the projects and is not required to contribute any additional funding towards exploration or development costs of the projects.
Significantly, it is therefore fully-funded for its share of the development of the projects.
Raya will also receive a cash payment of $US1 million upon the commencement of the development of the first of the three geothermal projects.