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Western GeoPower Corp. (CVE:WGP) Corporate news announcement processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement. ---------------------------------------------------------------------- --------------
NEWS RELEASE DATE: October 20, 2008 FOR IMMEDIATE RELEASE
WESTERN GEOPOWER CLOSES FIRST TRANCHE $10.6 MILLION FINANCING
VANCOUVER, Canada, October 20, 2008, TSX Venture Exchange Trading Symbol: WGP - Western GeoPower Corp., a renewable energy development company, is pleased to announce that it has closed the first tranche of the $25 million non-brokered private placement announced August 7, 2008.
The Company issued 42,732,960 units at a price of $0.25 per unit for total gross proceeds of $10,683,240. 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 units issued in the financing are subject to a four month hold period ending February 4, 2009.
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.
In addition to the above, the Company issued an additional 2,530,078 Units for a finder's fee of 6% payable in units on a portion of the proceeds. These units are also subject to a four month hold period ending February 4, 2009.
The Company is continuing its efforts to secure additional financing.
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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Western GeoPower Corp. 837 West Hastings Street Suite 411 Vancouver, BC V6C 3N6 Canada
