Four geothermal companies on Wednesday announced plans to merge.
GTO Resources Inc. (NEX:GTR.H), Polaris Geothermal Inc. (TSX:GEO), Western GeoPower Corp.(TSX VENTURE:WGP) and Ram Power, Inc., a private Delaware corporation signed a letter to form a single, publicly traded company.
According to a release, the new company will be able to attract capital more easily and will benefit from a diversified project portfolio spanning all development stages from exploration to producing.
GTO intends to raise approximately C$100 million in a private placement offering of subscription receipts, entitling purchasers to receive common shares in the combined entity following the business combination.
Current shareholders of Polaris will hold the majority of shares in the new company, with a 54.1% stake. Western shareholders will own 29.2%; Ram–15.4%; and GTO–1.3%.
Polaris Geothermal is a Canadian company with projects in Latin America and other parts of the world. Western is also based in Canadian and is developing the Western GeoPower Unit 1 power plant at The Geysers Geothermal Field in Sonoma County, California, USA. The company has additional projects under development in California and British Columbia. Ram has several geothermal
projects under development in California and Nevada.
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