November 27 (SeeNews) - Australian clean energy investor Wasabi Energy said on Wednesday it intends to use a portion of the proceeds from a planned 14.8 million Australian dollars ($13.5 million/10 million euro) rights issue to finalise the buy of the Tulza geothermal project in Turkey.
The project includes an existing 7.5 megawatt (MW) geothermal power plant (TGPP-1) with options for expansion to more than 80 MW, Wasabi Energy said in a press release.
Wasabi has already completed a pre-feasibility study (PFS) for a 30 MW expansion of the Tuzla plant, which is located in the western Turkish province of Canakkale.
As part of the non-renounceable entitlement issue, Wasabi will offer its shareholders of record as of December 5 to buy one new share for every share they already hold. Only shareholders from Australia, New Zealand, Switzerland and the UK can participate. The price per share has been set at 0.004 Australian dollars apiece. The rights issue is to add up to 3.72 billion of new shares in the company.
Of the proceeds, Wasabi said it planned to invest some 4.0 million Australian dollars in the Turkish geothermal project. About 8.0 million Australian dollars will go to repay a secured loan note and another 1.0 million Australian dollars will be used to back subsidiaryWasabi New Energy Asia. The company also intends to set aside nearly 1.6 million Australian dollars for working capital.
(1 euro = 1.4951 Australian dollars)