As part of the deal, U.S. Geothermal will also acquire Ram Power subsidiaries, including Western Geopower, Skyline Geothermal Holdings and Etoile Holdings.

The Ram subsidiaries, included in the deal, own full development interest in the project, comprising all geothermal leases, which cover 3,809 acres, development design plans and permits for a proposed 26MW power plant.

The broader Geysers geothermal resource is claimed to be the largest producing geothermal field in the world, having generated about 850MW since last 30 years.

U.S. Geothermal CEO Dennis Gilles said the company is currently evaluating two development approaches for the acquired project.

"The first involves obtaining a power purchase agreement and constructing a power plant, while the second option involves selling steam to one of several companies currently operating power plants in the Geysers," added Gilles.

Subject to customary closing conditions, the transaction is expected to be completed in April 2014.