Secures Additional US$11 Million Secured Loan Facility
posted on Jan 26, 2009 02:52PM
Geothermal energy is an environmentally friendly, renewable power source for the Generation of sustainable electrical power
Western GeoPower Corp.
TSX VENTURE: WGP
Western GeoPower Secures Additional US$11 Million Secured Loan Facility
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 26, 2009) -
THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA OR TO UNITED STATES OF AMERICA NEWS SERVICES.
Western GeoPower Corp., (TSX VENTURE:WGP) (FRANKFURT:WE6) a renewable energy company, today announced that it has entered into a new US$11 million secured loan facility. Under the terms of the loan facility the initial tranche of US$7 million 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$4 million will be available to the company when 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.
As partial consideration for entering into the loan facility, the company has agreed to issue 43,495,543 warrants of the company, each warrant being exercisable for a period of 24 months at a price per warrant of CDN$0.14. 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.
On November 7, 2008, the Company entered into an initial US$11 million secured loan facility, which has been fully drawn upon by the Company.
The company will file a material change report as soon as practicable after issuing this press release. The material change report will be filed less than 21 days prior to the closing of the loan agreement. The timing of the material change report is, in the company's view, both necessary and reasonable because the terms of the loan agreement were settled and approved by the company's board of directors and the company requires immediate funding to maintain the schedule for its project at The Geysers Geothermal Field in California.
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.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
For more information, please contactWestern GeoPower Corp.