Nevada Geothermal gets project financing

Nevada Geothermal Power (TSX VENTURE: NGP) (OTCBB: NGLPF) said today that it has secured $100 million in financing with Morgan Stanley for its 35 megawatt Blue Mountain, Faulkner I project.

The construction loan is expected to close by the end of the year. The money is to be used for construction of the Faulkner I geothermal power plant, the geothermal well field, as well as related infrastructure and development costs.

"We are very pleased to have secured the capital for the construction and operating phase for the Blue Mountain power project to provide renewable, clean energy to Nevada," said Brian Fairbank, president and CEO of Nevada Geothermal.

Nevada Geothermal used Markus Christen and Dundee Securities for financial advice on the deal. Christen is a director of Nevada Geothermal.

In March, the Nevada Public Utilities Commission approved a 20-year power purchase agreement for up to 35 MW of power from the company's Faulkner 1 plant, enough for 24,000 homes (see Nevada Geothermal power purchase agreement approved).

The plant is expected to come online in 2009.

The proposed geothermal plant will require a 20-mile long transmission line over desert land to to a connection point on the utility's line north of Mill City, Nevada.

Nevada Geothermal holds a 100 percent leasehold interest in the Blue Mountain, Pumpernickel, and Black Warrior properties in Nevada, and the Crump Geyser property in Oregon.

The properties are all at different levels of exploration and development, but the company estimates a potential of approximately 150 MW to over 200 MW from the current leaseholds.