VANCOUVER, Aug. 6, 2014 /PRNewswire/ - Alternative Earth
Resources Inc. ("AER") (TSX.V: AER) is pleased to announce that
it has signed a definitive Purchase and Sale Agreement ("PSA") with
Ormat Nevada Inc. ("Ormat"), whereby Ormat will purchase AER's
Crump Geyser (50% interest) and North Valley geothermal project
assets, and obtain an option, exercisable over a four (4) year
period, to purchase certain of AER's New Truckhaven geothermal
leases for cash payments totaling US$1,500,000. The sum of US$1,490,000 is to be paid on closing of the
transaction, and a further $10,000 is
payable if and when Ormat exercises the lease purchase option. The
PSA replaces a letter agreement with Ormat dated June 3, 2014, which was disclosed in a news
release dated June 11, 2014.
AER has received a US $50,000 non-refundable deposit in respect of the
PSA, and the transaction is subject to the approval of AER
shareholders at a Special Meeting to be held on August 22, 2014, and the acceptance of the TSX
Venture Exchange. The PSA, if approved, is expected to close on or
about August 27, 2014.
AER had cash and cash equivalent assets of
US$1.2 million as of March 31, 2014. If the approvals are obtained and
the transaction closes, the benefits to accrue to AER include: an
additional US$1,490,000 to the
treasury; free up cash of US$175,000
that is currently pledged for geothermal well bonds; remove a
liability for geothermal well abandonment costs of approximately
US$450,000; and eliminate on-going
geothermal lease payment obligations.
About Alternative Earth Resources Inc.:
Alternative Earth Resources Inc. is contemplating a change of its
business focus from renewable energy to mineral resource
development. With its projected strong cash position and greatly
reduced overhead, the Company plans to pursue mining project
acquisitions and/or merger opportunities.
This Press Release contains certain
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. We have tried,
whenever possible, to identify these forward-looking statements
using words such as "anticipates," "believes," "estimates,"
"expects," "plans," "intends," "potential" and similar
expressions. These statements reflect our current belief and
are based upon currently available information. Accordingly,
such forward-looking statements involve known and unknown risks,
uncertainties and other factors which could cause the Company's
actual results, performance or achievements to differ materially
from those expressed in or implied by such statements. We
undertake no obligation to update or advise in the event of any
change, addition, or alteration to the information catered in this
Press Release including such forward-looking statements.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Alternative Earth Resources Inc.
Brian D. Fairbank, P. Eng. President
& CEO
http://www.alternative-earth.com
Telephone: 604-688-1553
Toll Free: 866-688-0808
Email:bfairbank@alternative-earth.com
Investor Inquiries:
Telephone: 604-688-1553
Toll Free: 866-688-0808
Email: info@alternative-earth.com
SOURCE Alternative Earth Resources Inc.