Quote:

Ram Power . . .

Currently, the Company is operating a 10 MW facility in Nicaragua on the San Jacinto-Tizate site and a second 72 MW project is under construction at the same site.

The projects are backed by 25-year power purchase agreements.

These were properties that came through the amalgamation with Polaris Geothermal.


The Geysers property in Sonoma County, California, came through the amalgamation with Western GeoPower.

This project been developed half way and currently has four fully-tested wells.

Recently the landowners, who were entitled to a substantial return,

decided that they wanted to cash out now because of pending changes in the capital gains tax.

According to Hazy Ram it was a difficult negotiation, but the deal has been completed and the company now has control of the vast majority of the resource including the wells and the underlying lease.


In addition to the above, Ram Power recently acquired Sierra Geothermal which has over roughly 110,000 acres of geothermal properties in Nevada, California and British Columbia, with a combined total estimated capacity of 400MW.

Geothermal development is capital intensive,
and the capital crunch two years ago was a key reason that Western gaper and Polaris combined under Ram Power,

and certainly is why Sierra finally was brought into the fold.

At this point, good projects can get financing on good terms.

Euro banks, equity players, insurance companies and other financial institutions are starting to lend and invest.

Recently RPG went into the market to borrow $3 million in construction and term loans for their California project and the offering was oversubscribed two to one.

In financing the second phase of the San Jacinto project in Nicaragua,
the company went to Europe looking for $140 million and came back with commitments for $200 million.

~ The Stealth Investor, a weekly newsletter by John Pugsley - the July 19 issue.