Nevada Geothermal Power Inc. (NGLPF.OB) recently announced that the company’s wholly owned subsidiary, “NGP Blue Mountain I LLC”, has closed a $20 million financing deal with Glitnir Banki hf (“Glitnir”). As a result of this transaction, the company has also amended and restated the Commitment Letter for the Loan to include Glitnir as the official loan underwriter.
Glitnir Banki granted this loan to NGP Blue Mountain for the ongoing development of the company’s 35 Blue Mountain, Faulkner I project in Nevada. The loan proceeds will be used to aid pre-construction efforts for the company’s geothermal power plant, geothermal well field, related infrastructure and development costs.
“The significance of the Bridge Loan is that it will provide liquidity to continue well field development and plant engineering for Blue Mountain, as well to make down payments for critical power plant components, without interruption prior to having the entire project fully permitted. Additionally, we are delighted to have Glitnir Bank joining forces on the Construction Loan supporting our efforts in the first phase of the Blue Mountain development. We are looking forward to Glitnir’s continued support for Phase II and the development of our other promising projects,” stated Brian Fairbank, President and Chief Executive Officer.
“As the world’s leading financial institution within geothermal energy, we are pleased to support the continuation of development at Blue Mountain. We look forward to many more accomplishments following the recently announced success of Well 23-14, and to working with Morgan Stanley on the Construction Loan,” commented Arni Magnusson, Managing Director and Head of Glitnir’s Global Sustainable Energy Group.
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