Breaking News

Tweet TWEET

Nevada Geothermal Power Inc. reaches agreement with EIG Global Energy Partners ("EIG") on the transfer of NGP's ownership in the

Nevada Geothermal Power Inc. reaches agreement with EIG Global Energy Partners
  ("EIG") on the transfer of NGP's ownership in the Blue Mountain Geothermal
                                Project to EIG

PR Newswire

VANCOUVER, Jan. 16, 2013

VANCOUVER, Jan. 16, 2013 /PRNewswire/ - Nevada Geothermal Power Inc. (NGP)
(TSX.V: NGP) announces that the Company and funds managed by EIG Global Energy
Partners (collectively "EIG"), the mezzanine lender for the Blue Mountain
Geothermal Project, have entered into an equity transfer agreement (the
"Agreement") dated January 11, 2013 under which NGP will transfer its 100%
interest in NGP Blue Mountain HoldCo LLC ("BM HoldCo") to Blue Mountain Power,
LLC, a company owned by EIG. BM HoldCo holds a 100% interest in NGP Blue
Mountain I LLC ("NGP 1") which in turn owns all of the project assets
including geothermal leases, operating permits and licenses, the power plant,
wellfield and all other physical or contractual assets of the Blue Mountain
Project.

On closing of the Agreement, EIG shall accept the transfer of ownership of  BM 
HoldCo to EIG's  Blue Mountain  Power, LLC in  full satisfaction  of the  then 
outstanding principal,  accrued unpaid  interest  and any  other cash  or  fee 
obligations owing by BM HoldCo under its loan agreement with EIG. In addition,
EIG's cash  settled options  shall terminate.  NGP shall  receive $500,000  in 
satisfaction of a current account receivable from BM HoldCo.

As at December 31,  2012, BM HoldCo owed  approximately $97.4 million to  EIG. 
The project  is currently  in default  on the  subordinated EIG  debt,  formal 
notice of such having been delivered by  EIG on January 11, 2013. NGP 1,  the 
BM HoldCo subsidiary which will also be  transferred to EIG on closing of  the 
Agreement, holds a senior debt facility with approximately $84.2 million owing
as at December  31, 2012, which  is fully  secured by the  project assets.  On 
closing of the Agreement, both the mezzanine and senior debt obligations  will 
therefore be removed from NGP.

NGP will continue as project operator of the Faulkner 1 geothermal power plant
and will provide management and administrative services through its  operating 
subsidiary, Nevada Geothermal Operating Company LLC ("OPCO") and will  receive 
its normal  operating fee  under its  existing operating  agreement, during  a 
cooperative transition period of up to twelve months from the BM HoldCo equity
transfer date. Under  the Agreement,  EIG may by  written notice  at any  time 
during the transition period, elect to  replace the operator, or may  purchase 
OPCO for a nominal amount plus the value of the then existing working  capital 
capped at $350,000.

The ownership transfer of BM HoldCo under the Agreement is subject to  certain 
conditions  precedent,  including  approval  by  the  Federal  Energy   Review 
Commission ("FERC"), approval of a 2013  project budget by the senior  lender, 
approval by certain lease  holders and final approval  by the TSX-V  Exchange. 
Notification must be  given to certain  other project related  parties and  US 
regulatory agencies prior to  closing. The Agreement is  expected to close  in 
approximately 2 months.

About Nevada Geothermal Power Inc.:
Nevada Geothermal  Power  Inc. is  an  experienced renewable  energy  producer 
focusing on the development  of CLEAN electrical  power from high  temperature 
geothermal resources  in  the  United  States.  NGP  currently  owns  a  100% 
leasehold interest in several properties in  Nevada and California, and a  50% 
interest in Crump Geyser, in Oregon. These properties are at different levels
of exploration and development.

This Press  Release contains  certain  forward-looking statements  within  the 
meaning of the  Private Securities  Litigation Reform  Act of  1995. We  have 
tried, whenever possible, to  identify these forward-looking statements  using 
words such  as  "anticipates," "believes,"  "estimates,"  "expects,"  "plans," 
"intends," "potential" and similar expressions. These statements reflect  our 
current  belief  and   are  based  upon   currently  available   information. 
Accordingly, such forward-looking statements involve known and unknown  risks, 
uncertainties and  other  factors  which  could  cause  the  Company's  actual 
results, performance or achievements to differ materially from those expressed
in or implied  by such statements.  We undertake no  obligation to update  or 
advise in the event of any change, addition, or alteration to the  information 
catered in this Press Release including such forward-looking statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is  defined  in  the  policies  of  the  TSX  Venture  Exchange)  accepts 
responsibility for the adequacy or accuracy of this release.

Nevada Geothermal Power Inc.
Brian D. Fairbank, P. Eng. President & CEO
Telephone: 604-688-1553
Toll Free: 866-688-0808
Email:bfairbank@nevadageothermal.com

Investor Inquiries:
Telephone: 604-688-1553
Toll Free: 866-688-0808
Email:info@nevadageothermal.com

SOURCE Nevada Geothermal Power Inc.

Contact:

Nevada Geothermal Power Inc.
Brian D. Fairbank, P. Eng. President & CEO
Telephone: 604-688-1553
Toll Free: 866-688-0808
Email:bfairbank@nevadageothermal.com

Investor Inquiries:
Telephone: 604-688-1553
Toll Free: 866-688-0808
Email:info@nevadageothermal.com
 
Press spacebar to pause and continue. Press esc to stop.