Under the agreement, EDC will acquire all of HRH’s shares in Hot Rock Peru Ltd. (HRP) and Hot Rock Chile Ltd. (HRC). The agreement shall ultimately transfer selected geothermal concessions and authorizations held by HRP and HRC’s affiliates in Chile and Peru to EDC, including its remaining stake in the Quellaapacheta Project. The sale will be completed upon “fulfillment of several conditions precedent under the SSA.”
HRH, a wholly owned subsidiary of Hot Rock Ltd. of Australia, holds 23 geothermal assets across Chile, Peru and Australia. Early last year, EDC inked an agreement with HRH that gave the former control over the joint venture’s geothermal projects in South America.
Hot Rock said the net proceeds will provide working capital to allow it “to focus on how to progress with its remaining geothermal assets in Australia, Chile and Peru while also considering other alternatives that may be open to the company”.
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