Introducing Americas Geothermal: G4G acquisitions lead to name change

In Canada, G4G Resources Ltd., which to now described itself as a company with projects in iron ore, iron production and alternative fuels, says that it will change its name to “more effectively reflect the nature of the business with which it is involved”. Subject to TSX Venture Exchange and shareholder approval – and the acquisition of additional geothermal properties – G4G will become Americas Geothermal Inc.

G4G has entered into an exploration contract, with option to purchase, with Grupo Minero Aconcagua S.A., a private Argentinian company, and Andean Geothermal Power Corp., a private company registered in Texas. Under the terms of the agreement, G4G has the option to acquire properties in three separate geothermal areas in Argentina.

The properties are located in what the company says are the mining-friendly provinces of Jujuy, Salta and San Juan, and make up 112,000 acres all together. All of the properties are close to roads and/or power lines and a number of them are also close to current mining operations using diesel generation, and potential mining operations which will require power in the future. As has been seen before, the first customers for any electricity generated from geothermal resources will be mining companies.

G4G will develop the Despoblados in San Juan province under a joint venture with Energia Provincial Sociedad del Estado, which is the state-owned electrical utility in the provine. Despoblados covers about 8,900 acres, which is 18% of the 49,640 acre Valle del Cura. Under the joint venture agreement that dates back to September 2009 with EPSE, G4G will acquire 90% of the emerging rights of the Despoblados project and EPSE will hold the remaining 10%. G4G the rights to earn 100% of the remaining 82% of Valle del Cura, as well as 100% of Tuzgle and 100% of Tocomar in the agreement with Aconcagua and Andean.

Once regulatory approvals are in hand, G4G will begin development work immediately on the Valle del Cura property with a focus on Despoblados and will include structural mapping, geochemistry, geophysics and drilling, with the goal of defining geothermal resources that will support the commercial generation of electricity.

Once approved by the TSX Venture Exchange and G4G shareholders, the company will issue 10,000,000 common shares of the company. G4G will also issue an additional 5,000,000 common shares twice at six month intervals. The acquisition requires that a $265,000 loan to be repaid by G4G to Viso Gero Global Inc. within thirty days following signature of the definitive agreement. G4G will also be required to fund the exploration of the Despoblados property in the amount of $1,863,000 over two years. And the company will compensate the original vendors with a series of payments totaling $10,150,000 by September 30, 2013 and a 3% royalty on production of electricity.

Acquiring the rights to additional properties under the new definitive agreement follows G4G’s announcement of December 18, 2009 that the Company has entered into an agreement to acquire 100% of the Anetta geothermal property located in the province of Salta. Coupled with a December 2009 agrrement to acquire 100% of the Anetta geothermal property located in Salta, G4G will have the potential to develop power projects in three provinces and four geothermal fields in Argentina. Additionally, the company has applied for the geothermal rights to an another 46,290 acres adjacent to Anetta. If approved, G4G’s total geothermal land package in Argentina will be on the order of 174,640 acres.