Western GeoPower Corp.

Western GeoPower Corp.

August 07, 2008 09:00 ET

Western GeoPower Announces $25 Million Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 7, 2008) - Western GeoPower Corp., (TSX VENTURE:WGP) (FRANKFURT:WE6.F) 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

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.

For more information or to be put on our email list, please contact our office: (604) 662-3338 or US/Canada Toll Free: 1-866-662-3322, email: info@geopower.ca Investor Relations: IR@geopower.ca.

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

Contact Information

  • 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