Earth Heat Resources (ASX: EHR) has received a major boost in confidence for the company's clean technology with a A$5 million investment from a subsidiary of Socius Capital Group LLC.
Earth Heat will initially receive $2 million and issue around 25.3 million shares at $0.079 and around 12.7 million options exercisable also at $0.079.
After 90 days Earth Heat can call on another investment of $2 million, (or earlier with mutual consent).
The final $1 million investment can be called 90 days after the second.
The investment price of the second and third instalments is based on the last trading price before the notification is given.
Earth Heat said it will predominantly apply the funds to moving forward the Copahue project in Argentina.
More specifically, the company will begin the feasibility process with environmental surveys, front end engineering and design, in addition to commercial aspects of development.
Torey Marshall, managing director of Earth Heat, said, “This funding agreement, which is based on current and future share value, is an overwhelming vote of confidence by Socius in Earth Heat’s future growth prospects."
Earlier in the month a fair share value bracket of; A$0.36 to A$0.96, was placed on Earth Heat by New York firm Arrowhead.
Earth Heat's shares last traded at $0.085.