Cindrigo started the development of Croatian geothermal projects following the acquisition of share capital of Energy Co-invest Global Corp. back in 2022. Within the same year, Dravacel was able to secure the location permit for drilling in the Slatina-3 site as part of developing a 20-MW geothermal power plant.
Cindrigo states that the six-month extension is necessary to be able to finish the work needed to progress to the Exploitation Phase. Moreover, the company is confident that it has executed sufficient work to demonstrate its commitment to the project and belief in its commercial viability, and thus the license extension will be granted.
Aside from pausing the drilling operations, Cindrigo had also decided to postpone the drawdown of funds from the Tri Ri Asset Management (TRAM) until the license extension has been granted. In February 2024, Cindrigo entered into a £10 million convertible loan agreement for the Slatina-3 development with TRAM, a USA and Canada-based investment firm.
“We believe that the decision to pause site operations and the drawdown of TRAM’s funds until we receive confirmation of the licence extension represents a prudent approach to managing the Project and its funding requirements,” said Lars Guldstrand, CEO of Cindrigo.
“We still have high confidence in the Slatina 3 project’s potential which is underpinned by compelling geothermal data indicative of a high-quality reservoir. To date, nearly €8 million has been invested in the Project, with approximately €3 million allocated in 2024 alone, which illustrates our unwavering commitment to its success.”.
