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NEWS RELEASE
DATE:
November 10,
2008
FOR IMMEDIATE RELEASE
TRADING
SYMBOLS: TSX-V (Canada):
WGP.V FRANKFURT: WE6.F
WESTERN GEOPOWER SECURES US$11 MILLION SECURED
LOAN FACILITY
VANCOUVER, Canada, November 10,
2008, TSX Venture Exchange Trading Symbol: WGP ? Western
GeoPower Corp., a renewable energy
company, today announced that it has entered into a US$11 million secured
loan facility. Under the terms of the loan facility the initial tranche
of US$2,480,000 will be available to the company upon receipt of approval of
the TSX Venture Exchange for the issuance of warrants and the payment of
certain lending fees and expenses. The second tranche of US$8,520,000 will be
available to the company upon the later of 15 business days following the
initial advance having elapsed or the date upon which all conditions
precedent to that tranche have been met, including the perfection of
security, the discharge of any liens other than permitted liens, payment of
certain lending fees and expenses, and that no event of default then exists.
Interest will be payable at a rate of 1% for the first six months, 1.25% for
the second six months and 1.5% thereafter. The lender will have the
right, subject to the prior approval of the TSX Venture Exchange, to elect to
receive the payment of interest on the loan in the form of common shares of
the company.
As partial consideration for entering into the loan facility, the
company has agreed to issue 29,629,629 warrants of the company, each warrant
being exercisable for a period of 24 months at a price per warrant of
CDN$0.18. The warrants and underlying shares will be subject to a hold
period of four months following their issuance.
The proceeds of the loan may be used for drilling, project management,
development cost, plant equipment, and up to US$300,000 in monthly working
capital and general corporate purposes.
The company is proceeding with the loan facility in lieu of completing
additional tranches of its CDN$25 million non-brokered private placement
announced August 7, 2008. The company completed CDN$10.6 million of
that non-brokered private placement as announced on October 20, 2008.
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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