Perth, Australia (ABN Newswire) - Raya Group Ltd (ASX:RYG) and its JV partner Bakrie Power are pleased to announce that they have entered into a Heads of Agreement ("HoA") with Space Con Pty Ltd ("SpaceCon") for the sale and purchase of the Sokoria Geothermal Project.

Space Con and their partners are currently undertaking due diligence during January 2015 to finalise their intention under the agreement.

At the termination of the due diligence period the parties upon SpaceCon's satisfaction will enter into a Sale and Purchase Agreement ("SPA") for the Sokoria Geothermal Project whereby SpaceCon agrees to purchase 85% equity in Sokoria Geothermal Indonesia ("SGI"). SpaceCon will pay a deposit of USD $250,000 into an agreed escrow account as per terms and conditions stipulated in HoA whilst all parties await PT PLN Persero ("PLN") decision and acceptance of sponsor and shareholder amendment to the PPA.

Upon PLN's approval SpaceCon will pay the following:

- USD $2,000,000 (less deposit $250,000) to current shareholders Raya and Bakrie for their current equity holdings in Sokoria Geothermal Indonesia ("SGI"). Raya will receive USD $918,000 and retain a 6% free carry holding in the project.

- USD $1,000,000 deposit into SGI Company account for project development and working capital.

- USD $87,600 to PLN for Security Performance bank guarantee.

Raya will continue to provide further updates once the due diligence period concludes.



About Raya Group Ltd:

Raya (ASX:RYG) is a geothermal exploration and development company pursuing a range of projects in Australia and internationally. Raya is based in Brisbane in Queensland with projects in South Australia, Indonesia and India.

Raya turns geothermal resources into reserves for power generation – identifying, exploring and developing the resources into commercial power stations to generate zero-emission electricity.

Raya owns some of Australia's largest geothermal resources. Our company is pioneering the development of conventional geothermal technology in Australia – targeting geothermal resources where naturally occurring hot water is found in existing reservoirs beneath the earth's surface.



Source:

Raya Group Ltd



Contact:

Raya Group Ltd
Michael Boyle, Peloton Capital
T: +61-3-9642-0655
F: +61-3-9642-5117
E: michael.boyle@pelotoncapital.com.au
WWW: www.rayagroup.com.au