Dear Eric Sicre,
NEWS
RELEASE
DATE: August 7,
2008
FOR IMMEDIATE RELEASE
TRADING SYMBOLS: TSX-V (Canada):
WGP.V FRANKFURT:
WE6.F
WESTERN GEOPOWER ANNOUNCES $25
MILLION FINANCING
VANCOUVER,
Canada, August
7, 2008, TSX Venture Exchange Trading Symbol: WGP ? Western
GeoPower Corp., 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?
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. 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
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