Western GeoPower Corp.

Western GeoPower Corp.

December 08, 2006 09:00 ET

Western GeoPower Announces $2.5 Million Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 8, 2006) - Western GeoPower Corp. (TSX VENTURE:WGP)(FRANKFURT:WE6.F)(NOTC:WGEO), a renewable energy company focused on geothermal energy development, today announced that it has negotiated a non-brokered private placement for total proceeds of CDN $2.5 million through the sale of 16,666,667 units at a price of $0.15 per unit. Each unit is comprised of one share and one share purchase warrant exercisable at a price of $0.25 per warrant share until December 30, 2008.

The proceeds of the financing will be used to continue the development of Western GeoPower's planned 25.5 megawatt (net) power plant at the Company's Unit 15 leasehold at The Geysers Geothermal Field 75 miles north of San Francisco, California; to repay the outstanding $1 million balance against the Company's credit facility and the remaining funds will be applied toward working capital.

"The elimination of short-term debt and the contribution to working capital places the Company in a stable position to negotiate a power purchase agreement, to implement the environmental review and permitting process and to secure drilling and project financing," said Kenneth MacLeod, President and Chief Executive Officer of Western GeoPower. "The permitting process will be significantly streamlined through the use of existing drill pads, roads and transmission infrastructure which supported the original 62 megawatt power plant operated by PG&E from 1979 to 1989."

The new power plant, to be named Western GeoPower Unit 1, is projected to commence commercial operations in late 2009, providing approximately 200,000 megawatt-hours per year of clean, base-load electricity to the California market. California-based independent consultants GeothermEx, Inc. completed a feasibility report on the Unit 15 leasehold in October 2006, based upon an extensive database of resource information and demonstrated production history.

This is not an offer of securities for sale in the United States. The securities offered have not been, and will not be, registered under the Securities Act of 1933 and may not be offered or sold in the United States absent such registration or an exemption from registration.

Corporate Overview

Western GeoPower Corp. is a renewable energy company dedicated to the development of geothermal energy projects for the delivery of clean, base-load electricity generation. The Company holds 100% interests in the South Meager Geothermal Project in British Columbia, Canada and the Unit 15 Steam Field located in The Geysers Geothermal Field in California, United States.

On behalf of Western GeoPower Corp.

Kenneth MacLeod, President & CEO

Cautionary Note Regarding Forward-Looking Statements

Statements in this release that are forward-looking are subject to various risks and uncertainties concerning the specific factors identified above that reflect the Company's expectations and projections about its future results. The Company has tried whenever possible to identify these forward-looking statements which include but are not limited to, words such as "anticipates," believes," "estimates," "expects," "plans," "intends," "potential," and similar expressions. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. The Company disclaims any obligation or intention to update or to revise any forward-looking statement, whether as a result of new information, future events or otherwise. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. This news release is not for dissemination in the United States of America or to United States of America news services.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Western GeoPower Corp.
    (604) 662-3338 or US/Canada Toll Free: 1-866-662-3322
    (604) 646-6603 (FAX)
    Email: info@geopower.ca
    Western GeoPower Corp.
    Investor Relations
    (604) 662-3338 or US/Canada Toll Free: 1-866-662-3322
    (604) 646-6603 (FAX)
    Email: IR@geopower.ca
    Website: www.geopower.ca