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US Geothermal to raise C$10.93m in private placement

US Geothermal has done a deal with a syndicate of Canadian investment dealers for private placement of 8.1 million subscription receipts at C$1.35 each, for gross proceeds of approximately C$10.9m.

Each receipt will be automatically exchanged, without additional consideration on the exchange date, for one unit of US Geothermal.

Each unit consists of one share of common stock and one half of one common stock purchase warrant. Each warrant will entitle the holder thereof to acquire one additional share of common stock of US Geothermal for a period of 24 months following the closing of the offering for US$1.75 per share of common stock.

Net proceeds of the offering will be used by US Geothermal for drilling wells at the Neal Hot Springs geothermal project in Oregon and for general working capital purposes.

The offering is scheduled to close on or about 12 August this year. It is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange and the NYSE Amex.

US Geothermal, based in Boise, Idaho, operates geothermal power plants in Idaho and Nevada, and plans to bring the Neal Hot Springs facility on line in 2011.









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