Western GeoPower Corp., a renewable energy development company, announces the closing of a financing in the amount of $6,255,625 with Dundee Securities Corporation (the “Agent”) as announced December 14, 2005.
Effective as of December 30, 2005, the Company issued 2,345,500 flow through shares at a price of $0.15 per share and 39,358,667 non-flow-through units at a price of $0.15 per unit, subject to a hold period expiring May 1, 2006. 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 $0.25 per share for a period of three years.
The Agent has been paid a fee in the amount of 2,468,133 Units at a price of $0.15 per unit. Also, compensation options to purchase an aggregate of 4,170,417 Units have been granted to the Agent at a price of $0.15 per Unit..
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.
In addition, on December 30, 2005, the Company issued 6,666,667 Units to Quest Capital to convert into equity $1,000,000 from its outstanding loan at the price of the current financing. Quest has also extended the term of the loan for the remaining balance of $1.0M to December 15, 2006. In consideration for granting the extension, upon approval from the Exchange the Company will issue 1,000,000 bonus shares to Quest.
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