Argan's subsidiary Gemma Power Systems (GPS) has signed a consent and intercreditor agreement with Moxie Patriot for the construction and design of a 820MW gas fired power plant in Pennsylvania, US.
GPS has been funding Moxie Patriot in the development of the power plant project and has advanced about $3.7m in working capital to the project.
On 3 May 2013, Moxie Patriot signed a membership interests purchase agreement with a third party investor who will provide advances of certain preconstruction costs.
The consummation of the purchase of Moxie Patriot is contingent upon the third party investor securing permanent financing for the project.
Argan said that if the third party investor consummate the Moxie Patriot purchase, GPS would build and design the power plant under an engineering, procurement and construction (EPC) agreement.
In April 2013, GPS signed an EPC agreement with Moxie Liberty in connection with the construction and design of a 825MW gas fired power plant in Pennsylvania.