WESTERN GEOPOWER OBTAINS US$1.35 MILLION INCREA...
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NEWS RELEASE
DATE: July 30, 2009 FOR IMMEDIATE RELEASE
TRADING SYMBOLS: TSX-V (CANADA): WGP.V FRANKFURT: WE6.F
WESTERN GEOPOWER OBTAINS US$1.35 MILLION INCREASE TO SECURED LOAN
FACILITY
VANCOUVER, Canada, June 30, 2009, TSX Venture Exchange Trading
Symbol: WGP - Western GeoPower Corp., a renewable energy company,
today announced that it has obtained an increase in the amount
available under its existing secured loan facility (previously
announced on January 26, 2009) from US$11 million to US$12.35
million. Under the terms of the amended loan facility, the
additional tranche of US$1.35 million will be available to the
company when certain conditions precedent to that tranche have been
met, which are 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 on this new tranche at
a rate of 1.25% per month and the new tranche will be repayable on
June 30, 2010.
The proceeds of the loan may be used for drilling, project
management, project finance, development cost, plant equipment, and
up to US$500,000 in monthly working capital and general corporate
purposes.
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 amended loan
agreement. The timing of the material change report is, in the
company's view, both necessary and reasonable because the terms of
the amended 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
and to satisfy current liabilities.
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; the South
Brawley geothermal project in Imperial County, 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
Certain statements in this press release contain forward-looking
information within the meaning of applicable securities laws in
Canada ("forward-looking information"). The words "anticipates",
"believes", "budgets", "could", "estimates", "expects", "forecasts",
"intends", "may", "might", "plans", "projects", "schedule", "should",
"will", "would" and similar expressions are often intended to
identify forward-looking information, although not all
forward-looking information contains these identifying words.
The forward-looking information in this press release includes, but
is not limited to: the Company will file a material change report as
soon as practicable after issuing this press release.
The forecasts and projections that make up the forward-looking
information are based on assumptions which include, but are not
limited to: the Company is not subjected to any material adverse
events normally associated with exploration, development and
production of natural resources; the Company is not subjected to
additional governmental regulation and that political attitudes
towards geothermal production does not change; the Company is able to
remain in compliance with its debt obligations; the Company's
resource estimates are accurate; the Company's insurance is adequate
and that it does not incur any material uninsured liability; the
Company is able to comply with environmental regulations; the Company
has access to suitable infrastructure; no title defects affect the
Company's properties; the Company receives necessary permits on
acceptable terms; no material new competition; no significant
fluctuation in currency exchange rates and interest rates; the
Company is able to access additional capital; no material
fluctuations in energy prices; continued access to the Company's key
personnel; and, no conflicts of interest arise.
The forward-looking information is subject to risks, uncertainties
and other factors that could cause actual results to differ
materially from historical results or results anticipated by the
forward-looking information. The factors which could cause results to
differ from current expectations include, but are not limited to:
risks normally associated with exploration, development and
production of natural resources; risks relating to government
regulation; risks relating to indebtedness; risks relating to the
reliability of resource estimates; no history of geothermal
production; insurance and uninsured risks; environmental risks and
hazards; lack of access to required infrastructure; land title
defects; risks relating to obtaining permits on acceptable terms;
competition; fluctuations in currency exchange rates and interest
rates; risks relating to raising additional capital; fluctuations in
energy prices; reliance on key personnel; conflicts of interest; and,
other risks described in the Company's Management Discussion &
Analysis and other continuous disclosure documents.
All forward-looking information in this press release is qualified in
its entirety by this cautionary statement and, except as may be
required by law, the Company undertakes no obligation to revise or
update any forward-looking information as a result of new
information, future events or otherwise after the date hereof.
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
Nicole Robson - Marketing and Media: 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<br>V6C 3N6 Canada
WKN: 254049; ISIN: CA95827Q1037;
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