VANCOUVER (Reuters) - Ram Power Corp said on Monday its president and chief executive, Hezy Ram, has quit, a week after the geothermal company warned that a key project faced significant delays and cost overruns.
Walter Higgins, a Ram board member, has been appointed as interim president and CEO while the company searches for a new leader.
Higgins is the retired chairman and CEO of Sierra Pacific Resources, now called NV Energy, a Nevada electricity and gas utility, Ram said in a statement.
Ram’s shares were down 3 Canadian cents, or almost 2 percent, at C$1.53 on the Toronto Stock Exchange on Monday morning.
The stock lost 20 percent of its value last week after the company said its San Jacinto-Tizate project in Nicaragua faced construction delays and higher material and labor costs.
Ram expects to contribute $10 million to $15 million of extra equity to the project and estimates it will not see revenues from the venture until July or August, some three months later than it originally thought.
Reporting by Nicole Mordant; editing by Rob Wilson