Mineral rights acquisitions saves royalty payments

In Idaho, U.S. Geothermal Inc. says its subsidiary, USG Oregon LLC has acquired two underlying geothermal mineral ownership interests at the Neal Hot Springs project in eastern Oregon. A 25% mineral interest on 600 acres was purchased from a private estate and an option on an additional 25% interest in 2,110 acres was executed with a subsidiary of International Paper. The two acquisitions in part overlie each other, and when combined provide USG Oregon with 600 acres of 50% mineral ownership and 1,510 acres of 25% mineral ownership in the heart of the defined Neal Hot Springs geothermal reservoir. U.S. Geothermal President and CEO Daniel Kunz said the acquisitions will reduce the company’ annual royalty burden.