Seeking Alpha
Profile| Send Message|
( followers)  
Earlier today, Nevada Geothermal Power Inc. (OTCPK:NGLPF) announced it has mandated John Hancock Life Insurance Company to be the exclusive debt provider for an up to US$95 Million Term Loan Facility for the Blue Mountain, “Faulkner 1” geothermal project. The financing facility is expected to close in December 2009, subject to the usual legal due diligence and approvals. Read the full announcement.

We first mentioned Nevada Geothermal in these pages in a comment to our September 08, 2009 article entitled Geothermal Is Getting Red Hot, Part II. Here at The Green Investor we generally focus on larger companies such as geothermal pure-play Ormat (NYSE:ORA), but the reason we have been so excited about Nevada Geothermal is that it is about to graduate from being an exploration and development stage company to a revenue generating electricity producer, and if it makes the transition successfully, its valuation multiples will change dramatically.

Since the uncertainty surrounding their financing was the main remaining dark cloud overhead, we now see Nevada Geothermal as a much less risky speculation, and looking at the recent share price appreciation it looks like the market agrees with us.

Nevada Geothermal shares are up some 75% since early September
click to enlarge



Disclosure: No positions

Source: Great News for Nevada Geothermal