WESTERN GEOPOWER SECURES US$11 MILLION SECURED ...
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NEWS RELEASE
DATE: November 10, 2008
FOR IMMEDIATE RELEASE
TRADING SYMBOLS: TSX-V (Canada): WGP.V FRANKFURT: WE6.F
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<br>V6C 3N6 Canada
WKN: 254049; ISIN: CA95827Q1037;
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