BOISE, IDAHO — (Marketwired) — 08/13/13 — (NYSE MKT: HTM)(TSX: GTH) U.S. Geothermal Inc., a leading renewable energy company focused on the development, production, and sale of electricity from geothermal energy, announced today the distribution of the cash grant at the Neal Hot Springs geothermal power project.
As previously announced on April 13, 2013, U.S. Geothermal–s subsidiary, USG Oregon LLC, received a cash grant payment of $32,749,541 from the U.S. Department of Treasury for Specified Energy Property under Section 1603, Division B of the American Recovery and Reinvestment Act of 2009.
The cash grant funds have been held in a controlled account established by the U.S. Department of Energy as guarantor of the low interest rate loan provided by the U.S. Treasury–s Federal Financing Bank under the DOE–s Title XVII loan guarantee program, which was created by the Energy Policy Act of 2005. Proceeds of the cash grant were distributed in accordance with the loan agreement, with $11,870,137 of the proceeds being used to prepay the project loan, $11,167,473 of proceeds being used to fund a series of project reserves, and the balance of $9,711,930 being distributed as equity to the project owners.
After the loan prepayment, the remaining final loan balance is $70.4 Million. This loan has 21.5 years remaining with an aggregate fixed interest rate of 2.598%.
“We are very pleased to have qualified for and received the Investment Tax Credit Cash Grant from the U.S. Department of Treasury, and are glad to have those funds now released to us. Where the project initially qualified for a loan amount of $98 million, it has now been reduced to a total final loan of only $70 million.” said Mr. Dennis Gilles, Chief Executive Officer of U.S. Geothermal Inc. “We are also fortunate to have the benefit of such low cost debt for the Neal Hot Springs project for the next several decades.”
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About U.S. Geothermal Inc.:
U.S. Geothermal Inc. is a leading renewable energy company focused on the development, production and sale of electricity from geothermal energy and is operating geothermal power projects at Raft River, Idaho, San Emidio, Nevada and Neal Hot Springs, Oregon. The company is developing El Ceibillo, an advanced stage, steam geothermal prospect located within a 24,710 acre (100sq km) energy rights concession area located 8.5 miles (14 km) from Guatemala City, the largest city in Central America.
The information provided in this news release may contain forward-looking statements within the definition of the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. These statements are based on U.S. Geothermal Inc.–s current expectations and beliefs and are subject to a number of risks and uncertainties that can cause actual results to differ materially from those described, including but not limited to, the results from the exploration, production and injection well drilling at El Ceibillo. Readers are cautioned to review the risk factors identified by the company in its filings with Canadian and US securities agencies. Forward-looking statements are based on management–s expectations, beliefs and opinions on the date the statements are made. U.S. Geothermal Inc. assumes no obligation to update forward-looking statements if management–s expectations, beliefs, or opinions, or other factors, should change.
The NYSE MKT and the TSX do not accept responsibility for the adequacy of this release.
Contacts:
Saf Dhillon – Investor Relations
U.S. Geothermal Inc.
866-687-7059
208-424-1030 (FAX)