|
SGP Announces Private Placement of $3.78 Million
Vancouver, British Columbia - Sierra Geothermal Power Corp. (SGP) (TSX-V:
SRA) is pleased to
announce that on August 5, 2009, it completed a brokered private
placement in which it sold 18,930,800 units at a price of $0.20 per unit
for gross proceeds of $3,786,160 (a “Unit”). Each Unit consists of one
common share and one common share purchase warrant (a “Warrant”). Each
Warrant entitles the holder to purchase one additional common share of
the Company at a price of $0.27 until August 5, 2011.
SGP has utilized a group of agents to arrange a brokered private
placement. These agents collectively received an
aggregate cash commission equal to 7 percent of the amount raised and
1,325,156 agents’ warrants. Each agents’ warrant is exercisable at
a price of $0.27 per share until August 5, 2011.
All of the securities issued in this brokered private placement are
subject to a four-month hold period and may not be traded until December
5, 2009.
SGP proposes to use the net proceeds of this financing to fund power
purchase agreements and related transmission studies, drilling and
geophysical activities at its Silver Peak and Reese River projects, and
for general corporate and administrative expenses.
About
Sierra Geothermal Power Corp
Sierra Geothermal Power Corp. (SGP) is a renewable energy company focused
on the exploration and development of clean, sustainable geothermal
power. It is based in Vancouver, British Columbia and listed on the TSX
Venture Exchange under the symbol SRA. Its portfolio of geothermal
projects located in Nevada and California exceeds 365 square kilometres
(90,000 acres) and has a combined total estimated capacity of greater
than 500 MW. The company intends to finance development by utilizing a
combination of corporate equity, joint venture partnerships and project
debt, with the support of US Government grants and loan guarantees. To
find out more about Sierra Geothermal Power Corp. (TSX-V: SRA) visit our
website at www.sierrageopower.com.
On behalf of the Board of Directors
Gary Thompson, P.Geo
President & CEO, Director
Contact Information
Gary Thompson, President & CEO
Ph: (604) 683-0332 / 1-800-563-5631
info@sierrageopower.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This press release contains forward-looking statements.
Forward-looking statements are projections of events, revenues, income,
future economic performance or management's plans and objectives for
future operations. In some cases you can identify forward-looking
statements by the use of terminology such as "may",
"should", "anticipates", "believes",
"expects", "intends", "forecasts",
"plans", "future", "strategy", or words of
similar meaning. Forward-looking statements in this press release include
statements about SGP proposal to use the net proceeds of the financing to
fund power purchase agreements and related transmission studies, drilling
and geophysical activities at its Silver Peak and Reese River projects;
and the Company’s intent to finance the development of its projects
through a combination of corporate equity, joint venture partnerships and
project debt with the support of U.S. government grants and loan
guarantees. These statements are only predictions and involve known and
unknown risks, uncertainties and other factors, including the risks
inherent in our industry, the challenging capital markets and other risks
identified by us in our periodic filings on SEDAR (which can be viewed at
www.sedar.com). Any of these risks could cause our or our industry's
actual results, levels of activity, performance or achievements to be
materially different from any future results, levels of activity,
performance or achievements expressed or implied by these forward-looking
statements.
While these forward-looking statements and any assumptions upon which
they are based are made in good faith and reflect our current judgment
regarding the direction of its business, actual results will almost
always vary, sometimes materially, from any estimates, predictions,
projections, assumptions or other future performance suggested in this
press release. Except as required by applicable law, including the
securities laws of Canada, we do not intend to update any of the
forward-looking statements to conform these statements to actual results.
|