U.S. Geothermal Inc., an energy project developer whose shares have doubled in the past year, agreed to buy Ram Power Corp.’s proposed Geysers California geothermal project for $6.4 million in cash.
The acquisition includes Ram Power units that own geothermal leases for about 3,809 acres, as well as design plans and permits for the proposed 26-megawatt project, Boise, Idaho-based U.S. Geothermal said in a statement today. The transaction is expected to close on or before April 30.
The Geysers Project, located in Sonoma County, would use steam created from underground heat to generate electricity. U.S. Geothermal gained 7.7 percent to 73 cents at the close in New York.
Ram Power said in January 2013 it was seeking a partner or buyer for the project and would reduce staff to “enhance long-term cash flow.” The sale will free up additional capital for the company, Antony Mitchell, executive chairman of the Reno, Nevada-based said in a separate statement.