Western GeoPower Corp.(WGP.V; WE6.F), announced it will raise $6 million in a private placement to continue the current development program at its South Meager Geothermal Project.
The financing will comprise of a minimum of 30,000,000 units at a price of $0.20 per unit. Each Unit is comprised of one share and one share purchase warrant, each warrant entitling the holder to purchase one additional share at a price of $0.35 per share for a period of three years. The Agent has reserved the right to substitute up to $1,000,000 of the financing with up to 5,000,000 flow-through shares at a price of $0.20 per share. Closing of the financing is scheduled for December 9, 2005 (“Closing Date”).
The proceeds of the financing will be used to conduct the flow-testing of the recently-drilled geothermal wells, MC-6; MC-7 and MC-8 to enable the completion of a feasibility study for the South Meager Geothermal Project; to repay $2,000,000 against the Quest Loan Facility; and for general working capital purposes.
Western GeoPower Corp. is dedicated to the development of its 100% owned South Meager Geothermal Project, held under a geothermal lease for the commercial generation of electricity. The project, located 170 kilometers north of Vancouver, B.C., is in close proximity to Whistler, the location of the 2010 Winter Olympic Games, and is the most advanced geothermal project in Canada. The Company currently is conducting a feasibility study to confirm the commercial viability of the South Meager Project to support an initial generation of 100 megawatts of electricity, which is equivalent to the power consumption of 80,000 households.
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