Mokuti shareholders have also agreed to change the name of the company to Green Rock Energy Limited, on completion of the acquisition.

Managing director Adrian Larking said funds to be raised and existing cash reserves would enable the company to implement its plans to recover geothermal energy from the Olympic Dam geothermal licences.

"The opportunity is right to become a significant producer of renewable energy and the market for power is immense on a local, state, and interstate level," Larking said.

Plans were on track to begin drilling within the next two months, according to Larking.

"Up to four holes will be drilled into granitic rocks that are known from nearby WMC drilling to be anomalously hot," he said.

Green Rock and Perilya have awarded a contract to Boart Longyear to drill down to 1.5 to 2 kilometres depth in each hole.

The cored drill holes will better define the temperature and rock properties at depth and the top of the geothermal energy anomaly.

Drill core and measurements collected from the drill holes will let Mokuti refine the drilling location of the first deep geothermal energy well.

Depending on the success of these four holes, the company intended to drill its first geothermal energy well in 2006.

"The drill location will reflect the optimum combination of hot temperatures, thermal gradients and geological factors such as rock types, fracture properties and geomechanical stress information," Larking said.

"Based on existing information, the first geothermal energy well could be drilled to about five kilometres depth to tap the hotter temperatures required to generate electricity commercially."

At Mokuti’s general meeting held on Wednesday, shareholders agreed to issue 15 million shares and 15 million performance shares to the vendors, ratified a placement of 3 million shares at an issue price of 20 cents each, approved a further placement of 2 million shares at an issue price of 20 cents each and agreed to grant 2.5 million options to Emerald Corporation Pty Ltd.