U.S. Geothermal issues, closes $8.6 million private placement

In Idaho, U.S. Geothermal Inc. entered into a securities purchase agreement with several institutional investors, where the company will issue 8,209,519 shares of common stock at $1.05 per share for gross proceeds of about $8.6 million. Each investor will also be issued a common share purchase warrant exercisable for 50% of the number of shares of common stock purchased by the investor. The net proceeds, expected to be about $8 million, will be used for the company’s Neal Hot Springs project and for general purposes. Future financing may be needed for initiating a planned Raft River Unit I capital project and a well drilling program for a planned expansion at San Emidio. The private placement, which was subject to the approval of the NYSE Amex and the Toronto Stock Exchange, closed March 16.