Mustang Geothermal Corp. (OTC:URXE) announced on Wednesday that on June 21, 2011 it has entered into a non-binding letter of intent with ARG Vermogensverwaltung AG of Munich, Germany, in order to fix up a material definitive agreement ensuring a $50 million in funding to the Company. The terms of this non-binding letter of intent consists of a proposed two tranche funding of $25 million dollars each.
However this proposed funding is subjected to the decisions of ARG Vermogensverwaltung AG and the Company entering into a Memorandum of Understanding in a period of 30 days and the obtaining of a trading listing on the Deutsche Borse trading exchange in Germany by the Company. Following the obtaining the trading listing on the Deutsche Borse, and completion of the other terms and conditions and normal requirements of due diligence for the Memorandum of Understanding, the Company and ARG Vermogensverwaltung AG shall enter into a Material Definitive Agreement in order to finalize the proposed delivery of the funding to the Company.
Richard Bachman, the President and CEO of the Company sais that they are excited to commence the funding process with ARG Vermogensverwaltung AG and that the Company is determined to use its best efforts to move the process forward and to obtain the trading registry on the Deutsche Borse exchange as soon as possible, and after that to complete due diligence and the Memorandum of Understanding to move this forward to completion and obtaining the funding that will fuel their exploratory green geothermal operations and green energy production.
In addition a spokesperson for ARG remarked that ARG is very excited about the prospects of providing Mustang Geothermal $50 million and they look forward to a close relationship.
Mustang Geothermal Corp, formerly Urex Energy Corp., is an exploration-stage company. The Company is primarily engaged in the acquisition and exploration of uranium mining properties.
The shares of the Company last traded at $0.270 after rising 17.39% on Thursday. During the dat it ranged at $0.24 – $0.33, while over the 52-Week period it ranged at $0.09 – $2.60 and changed 86.50% in the negative direction since then. Its market cap amounted $8.11 million. Its 50-Day and 200-Day moving averages amounted $0.25 and $.52 respectively.
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