VANCOUVER, Aug. 27, 2014 /PRNewswire/ - Alternative Earth Resources Inc. ("AER") (TSX.V: AER) is pleased to announce that it has completed the sale of certain geothermal projects to Ormat Nevada Inc. ("Ormat") pursuant to a Purchase and Sale Agreement dated August 5, 2014 (the "Transaction"). Under the Transaction, Ormat also has the option, exercisable for 4 years, to acquire an additional geothermal lease. Shareholder approval for the Transaction was obtained at the annual and special meeting of shareholders held on August 22, 2014 (the "Meeting"). Details of the Transaction were previously disclosed in news releases dated June 11, 2014, and August 5, 2014.
The benefits to AER resulting from the Transaction include: receipt today of US$1,490,000 to the treasury; freeing up US$175,000 of cash that is currently pledged for geothermal well bonds; removal of liability for geothermal well abandonment costs of approximately US$450,000; and elimination on-going geothermal lease payment obligations.
About Alternative Earth Resources Inc.: AER is contemplating a change of its business focus from renewable energy to mineral resource development, a change which was also approved by shareholders at the Meeting. With its strong cash position and greatly reduced overhead, AER plans to pursue mining project acquisitions and/or merger opportunities.
For more information, please visit: Alternative Earth Resources Inc.