WESTERN GEOPOWER RAISES $18.4 MILLION
DATE: July 27, 2007 FOR IMMEDIATE RELEASE
TRADING SYMBOLS: TSX-V (Canada): WGP.V FRANKFURT: WE6.F
WESTERN GEOPOWER RAISES $18.4 MILLION
VANCOUVER, Canada, July 27, 2007, TSX Venture Exchange Trading Symbol: WGP - Western GeoPower Corp., a renewable energy development company, today announced commitments for $18.4 million in financing through a combination of private placement and exercise of warrants and options.
The private placement comprises 25,000,000 shares of Western GeoPower at $0.25 per share for proceeds of $6,250,000 from two strategic investors - Iceland-based geothermal developer, Geysir Green Energy will acquire 20,000,000 common shares and Glitnir Bank, the second-largest Icelandic bank, will acquire 5,000,000 common shares. On closing of the private placement, a representative of Geysir will be appointed to the Western GeoPower Board. The private placement is subject to regulatory approval and the shares will be subject to a four-month hold.
A total of 46,026,668 warrants are currently being exercised at a price of $0.25 per share for proceeds of $11,506,667. Of this amount, 15,333,334 free-trading shares will be issued to some subscribers and 30,693,334 units (the "Units") will be issued to other subscribers pursuant to the warrant exercise incentive program announced June 29, 2007. The Units comprise one common share at $0.25 and one new warrant which will allow the holder to acquire one common share of Western GeoPower at $0.35 per share until December 30, 2008. 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, it will trigger a 30 day timeframe within which to exercise the warrants or they will expire. The Units are subject to a four-month hold.
A Canadian financial institution has exercised 4,170,416 Agents Options at $0.15 for proceeds of $625,562.
"We are pleased to report that the $18.38 million of funding represents most of the equity component of the project finance for drilling the wells and constructing our proposed 25.5 megawatt (net) power plant at The Geysers Geothermal Field in California," said Kenneth MacLeod, President and CEO of Western GeoPower. "As an added benefit, having Geysir Green Energy and Glitnir Bank as strategic investors reinforces our ability to secure the remainder of the project finance on favourable terms."
Geysir Green Energy was formed in early 2007 with a mission to become a leading investor in geothermal power projects. Geysir is pursuing expansion through mergers and acquisitions and the development of new projects. Well capitalized to realize on its goals, Geysir has a suite of directors, management and technical staff with considerable experience in geothermal funding, development and operations. Under the leadership of CEO Asgeir Margeirsson, Geysir is investing in the development and construction of geothermal plants, acquiring interests in geothermal plants currently owned by power utilities and participating in the privatization of energy companies in various parts of the world.
"Our purchase of an equity interest in Western GeoPower fits perfectly with our plan to be a participant in the largest energy market in the world - the United States," said Mr. Margeirsson. "We look forward to assisting Western GeoPower in expanding its capacity to acquire and develop additional projects."
The financial group Glitnir offers universal banking and financial services. Glitnir is a leading niche player in three global industry segments; seafood/food, sustainable energy, and offshore services vessels. The Glitnir group has operations in Iceland, Norway, Sweden, Denmark, Finland, the UK, Luxembourg, Russia, Canada and China and plans to open a US office in New York in the fall of 2007. Glitnir is listed on the Icelandic Stock Exchange. .
Corporate Overview Western GeoPower Corp. is a renewable energy company dedicated to the development of geothermal energy projects for the delivery of clean, baseload electricity generation. The Company is developing a 25.5 Megawatt (net) geothermal power plant at The Geysers Geothermal Field in Sonoma County, California, United States. Western GeoPower is also developing the South Meager Geothermal Project in British Columbia, Canada. On behalf 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: firstname.lastname@example.org Investor Relations: IR@geopower.ca
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Western GeoPower Corp. 837 West Hastings Street Suite 411 Vancouver, BC<br>V6C 3N6 Canada
WKN: 254049; ISIN: CA95827Q1037; ;