5.5.2004: Meldung: Western GeoPower Corp.: $15,000,000 Financing Completed
VANCOUVER, BRITISH COLUMBIA, May 5, 2004. Western GeoPower Corp., a renewable energy development company, announces the closing of the previously announced $15 million syndicated equity offering led by Dundee Securities Corporation. The Company has issued 4,927,783 flow through shares and 3,180,325 non-flow through units, each priced at $1.85. Each unit is comprised of one share and one warrant to purchase one common share at an exercise price of $2.50 per warrant share, for a period of three years. The warrants will have an "accelerator" provision such that if the closing price of the Company"s common shares exceeds $3.00 for 20 consecutive business days, the Company may issue a press release indicating the warrant expiry date will "accelerate" to become the date 20 days following the date of issuance of the press release.
As previously announced, Dundee will sponsor an application for Western GeoPower to list its common shares on the Toronto Stock Exchange.
The proceeds of this offering will be used to complete the previously announced feasibility study on the Company"s South Meager Geothermal Energy Project (South Meager), which is located 170 km north of Vancouver and held under the only geothermal lease issued in Canada for the commercial generation of electricity. An application has been made for permits for road building and site preparation to commence in May 2004, to be followed through the second half of 2004, by the drilling and testing of two deep production wells to confirm the commercial viability of the project with the objective of completing the feasibility study by year end. On the successful conclusion of the feasibility study, the Company intends to submit the project to the Environmental Assessment Office (EAO) of the British Columbia government for review in early 2005. Concurrent with EAO review, the Company would negotiate a power sales contract and project financing, with the objective of achieving resolut
ion of all three elements in mid-2005. This would be followed in late 2005 by the continuation of well drilling and commencement of plant construction, leading to commercial generation by mid-2007.
With an initial plant capacity of 100 Megawatts (MW) of electricity, equivalent to the power consumption of 80,000 households, the Company"s independent consultant, GeothermEx, Inc., has stated that the most likely capacity of South Meager would be 192 MW. California-based GeothermEx is an international authority in the evaluation of geothermal resources and has been involved in the development of all the producing geothermal fields in the USA and over 750 projects worldwide.
Western GeoPower Corp. (Ein Click führt sie zumECOreporter.de-Portrait) is dedicated to the development of its 100% owned, South Meager Geothermal Project, held under a geothermal lease for the commercial production of electricity. The project is located 170 km north of Vancouver, Canada. The estimated development potential is 200 MW of electricity. For more information please see www.geopower.ca or www.westerngeopower.de.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
For further information, please contact:
Western GeoPower Corp.
Suite 411-837 West Hastings Street
Vancouver, British Columbia
Canada V6C 3N6
President and CEO
Tel. 001-604-662 3338
Fax 001-604-646 6603
Tel +49-711-25 35 92-30
Fax +49-711-25 35 92-33