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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. ---------------------------------------------------------------------- --------------
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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Western GeoPower Corp. 837 West Hastings Street Suite 411 Vancouver, BC V6C 3N6 Canada
