Ann: Kalina to Partner in developing mutliple geothermal projects, page-29

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GG08

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20/12/17

15:58

Post #: 29776820
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Originally posted by seanyt ↑

"The agreement provides terms under which Kalina can earn a majority interest in KHG through its participation and support in project development."

So does this indicate that Kalina won't earn revenue from the engineering services and project management they provide, rather they will earn a majority interest in KHG for their work?

"The agreement provides that Kalina’s team will manage project development through to the financing stage and construction of each project identified by the KHG business development team. This will include specialist engineering services, the finalisation of appropriate Power Purchasing Agreements and obtaining appropriate project financing. If well executed and properly contracted, Kalina believes this project will be financially attractive and serve as a stepping stone to further projects in the Klamath region."

By the looks, if they are intending to provide all the services mentioned above through to PPA's and project financing to earn a majority interest in KHG, Kalina's revenue source will then be the profitability of KHG (in accordance with KPOs earnt ownership % ). Doesn't this stray away from the new business model of KPO as detailed in the presentations of late last year, and go back to a build, own, operate business model which the previous management undertook? Perhaps without the "operate".

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"Doesn't this stray away from the new business model of KPO as detailed in the presentations of late last year"

Perhaps... would you prefer no deal between them?

KPO Price at posting: 7.0¢ Sentiment: Buy Disclosure: Held
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