Western GeoPower Corp. (WGP.V; WE6.F), a has negotiated a non-brokered private placement for CDN $2.5 million through the sale of over 16 million units at $0.15. Each unit is comprised of one share and one share purchase warrant exercisable at a price of $0.25 per warrant share until December 30, 2008.
The proceeds will be used to continue the development of Western GeoPower’s planned 25.5 megawatt power plant at The Geysers Geothermal Field, 75 miles north of San Francisco, California; to repay the outstanding $1 million balance against the Company’s credit facility; and for working capital.
“The elimination of short-term debt and the contribution to working capital places the Company in a stable position to negotiate a power purchase agreement, to implement the environmental review and permitting process and to secure drilling and project financing,” said Kenneth MacLeod, President and CEO. “The permitting process will be significantly streamlined through the use of existing drill pads, roads and transmission infrastructure which supported the original 62 megawatt power plant operated by PG&E from 1979 to 1989.”
The new power plant, to be named Western GeoPower Unit 1, is projected to commence commercial operations in late 2009, providing approximately 200,000 megawatt-hours per year of base-load electricity to the California market.
Western GeoPower Corp. holds 100% interests in the South Meager Geothermal Project in British Columbia, Canada and the Unit 15 Steam Field located in The Geysers Geothermal Field in California, United States.
Sierra Geothermal Power Corp. announced it has acquired the majority interest in Cayley Geothermal Corp., thereby giving Sierra an interest in 15 geothermal projects in Nevada and California.
Sierra Geothermal also completed a $5.06 million private placement to satisfy property payments and fund the exploration of several advanced projects once permits have been issued.
Sierra Geothermal’s projects are categorized as Tier I, II and III. Tier I projects are at the pre-feasibility and production assessment drilling stage. Sierra has four Tier I projects having a total resource potential estimate of 90 to 180 MW. The four most advanced (Tier I) projects include the Reese River Project, the Pumpernickel Project, the Alum Project and Silver Peak Project.
Sierra has four Tier II projects having a total estimated potential of 30 to 65 MW and seven projects in the Tier III stage of development. The net electricity of 90 megawatts (MW) is enough power to run 72,000 homes.
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