Western GeoPower Announces $25 Million Financing
Thursday August 7, 9:00 am ET
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 7, 2008) - Western GeoPower Corp., (TSX VENTURE:WGP - News; FRANKFURT:WE6.F - News) a renewable energy development company, today announced it has arranged up to $25 million in equity funding by way of a non-brokered private placement of 100,000,000 Units (the "Units") at a price of $0.25 per Unit. Each Unit consists of one common share and one transferable share purchase warrant exercisable into one common share for a period of 24 months from closing at a price of $0.45 per share during the first 12 months and $0.50 per share during the last 12 months.
The funds will be used for the ongoing drilling and development of the 35 MWe Western GeoPower Unit 1 geothermal project at The Geysers geothermal field in California and for general working capital.
"This funding is intended to satisfy the requirement for additional equity resulting from the increase in plant capacity from 28 MWe to 35 MWe as announced April 9, 2008," said Kenneth MacLeod, President and CEO of Western GeoPower. "With construction scheduled to commence in Spring 2009, the focus will shift to securing a construction loan for the balance of the project financing."
The warrants are subject to an acceleration provision, which provides that, if the Company's shares trade at $0.50 or more for ten consecutive trading days during the first year or $0.55 or more for ten consecutive trading days during the second year, it will trigger a 30 day timeframe within which to exercise the warrants or they will expire.
A finder's fee of 6% payable in Units, is applicable on a portion of the proceeds. The private placement is subject to regulatory approval and the Units will be subject to a four-month hold.
About Western GeoPower Corp.
Western GeoPower Corp. is a renewable energy company dedicated to the development of geothermal energy projects for the delivery of clean, sustainable, baseload electricity generation. The Company is developing The Western GeoPower Unit 1 geothermal power plant at The Geysers Geothermal Field in California, United States and the South Meager Geothermal Project in British Columbia, Canada.
On behalf of the Board of Western GeoPower Corp
Kenneth MacLeod, President & CEO
