U.S. Geothermal Inc. Announces Distribution of the $33 Million Cash Grant
Received for the Neal Hot Springs Project
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."
Please visit our Website at: http://www.usgeothermal.com
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.
Saf Dhillon - Investor Relations
U.S. Geothermal Inc.
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