Energy Development Corp. (EDC) on Tuesday said that its shareholders, its joint venture partner and related units have signed on to four projects in Peru and Chile.
EDC of the Lopez group and its Canada-based partner, as well as their subsidiaries have executed four shareholders’ agreements and other related agreements for the implementation of the terms of a joint venture agreement covering the four projects, EDC said in a disclosure to the Philippine Stock Exchange.
EDC and Alterra Power Corp. of Canada will jointly undertake the Tutupaca Norte, Loriscota, and Crucero geothermal projects in Peru. The companies will also tend to the Mariposa geothermal project in Chile.
Under the shareholders’ agreement for the Mariposa project, EDC (through a wholly owned subsidiary in Chile) will acquire a 70-percent interest in Compañía De Energia, an Alterra unit in Chile that owns the Mariposa project.
Alterra will continue to hold a 30-percent interest in Enerco through its wholly owned subsidiary Magma Energy Chile Limitada, subject to the terms of the shareholders’ agreement for the Mariposa project.
Under the terms of each agreement for a Peruvian project, a new project company will be incorporated in Peru and that unit will be responsible for developing the relevant Peruvian project.
Each Peruvian project company will be 70-percent owned by EDC (through its subsidiary in Peru) and 30 percent owned by Magma Energia Geotermica Peru S.A., a unit of Alterra.
EDC’s continued participation in the Peruvian projects and the Mariposa project is subject to its resource assessment of each of the projects in accordance with the terms of the agreements.
Alterra Power has already started exploration activities in Chile with some shallow drilling. EDC is set to complement earlier efforts with deep well drilling.
In late 2012, EDC signed an agreement with Alterra Power, in which the Lopez-led firm would conduct exploration fieldwork and due diligence at Alterra Power’s geothermal concession in Chile and those in Peru.
The completion of their agreement is subject to “fully termed documentation” and necessary regulatory approvals, EDC said. Riza T. Olchondra