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Ram Power, Corp. Announces Resolution of Credit Facility Non-Compliance Issues

June 8, 2011 - Reno, NV

Ram Power, Corp. (TSX: RPG) ("Ram Power" or the "Company"), a renewable energy company focused on the development, production and sale of electricity from geothermal energy, today announced the successful resolution of certain non-compliance issues related to its $50 million term loan credit facility (the "Credit Facility") with Sprott Resource Lending Partnership, Exploration Capital Partners 2008 Limited Partnership and Newberry International Holdings Ltd. (collectively, the "Lenders"). The Company and the Lenders entered into an amendment to the Credit Facility on May 30, 2011 (the "Amendment") covering, among other things, the use of proceeds of the Credit Facility and additional permitted investments by the Company in its subsidiaries.

The Credit Facility originally provided that the proceeds thereof were allocated to pay for specific categories of expense including non-drilling expenses at the Company's San Jacinto geothermal project in Nicaragua (the "San Jacinto Project"), drilling expenses for the San Jacinto Project, drilling expenses for the Company's Orita geothermal project in the Imperial Valley in Southern California, expenses relating to the Company's Casita geothermal project in Nicaragua, land acquisition payments for the Company's Geysers geothermal project in Northern California and for working capital purposes and that the amount so allocated for each expense was capped. Under the terms of the Amendment, the Company may re-allocate the proceeds of the Credit Facility to pay for drilling and construction expenses for the San Jacinto Project and for working capital purposes in excess of the original caps. The Lenders have also agreed to permit the Company to make additional investments in its subsidiaries to fund drilling and construction expenses for the San Jacinto Project and development expenses for other projects in the Company's portfolio.

In return, the Lenders requested the right to re-evaluate the Credit Facility should certain changes to the Company's board of directors or management occur. In particular, the amendment provides that if the Company's current Executive Chairman, Antony Mitchell, leaves the Company's board of directors the Lenders have the right to approve his replacement or, if he is not replaced, the composition of the Company's board of directors after his departure. The amendment also provides that the outstanding loans under the Credit Facility will be accelerated if the Company's former Chief Executive Officer, Yeheskel (Hezy) Ram, is re-appointed to or becomes a member of the Company's board of directors or becomes an officer, employee or paid consultant of the Company or any of its subsidiaries.

"We are pleased with the successful re-negotiation of Credit Facility which permits us to use the proceeds of our recent equity offering to help complete the San Jacinto Project," stated Walt Higgins, Interim President and CEO of Ram Power. "We would like to thank the Lenders for their continued support of the Company and of the San Jacinto Project."

About Ram Power

Ram Power is a renewable energy company based in Reno, Nevada, engaged in the business of acquiring, exploring, developing, and operating geothermal properties. Ram Power has an interest in geothermal projects, primarily in the United States, Canada, and Latin America.

Cautionary Statements

This press release contains "forward-looking information" within the meaning of applicable securities laws including information regarding the business of Ram Power. Readers are cautioned not to place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by this information. The statements in this press release are made as of the date of this release. Ram Power undertakes no obligation to update forward-looking information, other than as required by law, or comment on analyses, expectations or statements made by third parties in respect of Ram Power, or its financial or operating results or its securities.

Steven Scott
Director of Investor Relations
Ram Power, Corp.
Phone: 775-398-3711
Email: Email Contact


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