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SGP Reports First Quarter Financials and Annual Shareholders’
Meeting Results
Vancouver, British Columbia - Sierra Geothermal Power Corp. [TSX-V:
SRA] (“SGP”) today released financial results for its first quarter ended
March 31, 2009 and announced the results of its annual general meeting
held May 14, 2009.
First Quarter 2009 Financial Overview
For the first quarter of 2009, SGP reported a net loss of $428,231 or
($0.01) per share compared to a net loss of $716,903 or ($0.01) per
share, for the first quarter of 2008. As of March 31, 2009, SGP had
working capital of $3,509,302 compared to working capital of $4,039,809
as of December 31, 2008.
Cash used in the first quarter of 2009 decreased by 47 percent to
$568,562 from $1,078,340 in the fourth quarter of 2008, mainly as a
result of reduced exploration related expenses. During the period,
SGP has followed a strategy of advancing its leading projects by
minimizing exploration activities and focussing on its permitting work.
The full text of SGP’s financial statements and Management Discussion and
Analysis is available on the SEDAR website at www.sedar.com.
Annual Shareholders Meeting Overview
SGP is pleased to announce that its shareholders passed all of the
resolutions on the agenda at its Annual and Special Meeting of
Shareholders held May 14, 2009:
- All directors nominated for the ensuing year were
elected;
- KPMG was appointed as the Company’s auditor for the
ensuing year;
- amendments to the 2006, 2007 and 2008 Stock Option Plans
were approved;
- SGP’s 2009 Stock Option Plan was adopted;
- the proposed amendment to SGP’s Securities Exchange
Agreement with Cayley Geothermal Corp. was approved.
Cayley Acquisition
On May 14, 2009, a majority of SGP’s disinterested shareholders approved
the acceleration of the final stage of SGP’s acquisition of Cayley
Geothermal Corp. As a result, SGP moved the closing date for the
acquisition of the last 16.57 percent of Cayley Geothermal Corp.’s issued
and outstanding shares from November 21, 2009 (the date provided for in
the original agreement) to May 15, 2009. As contemplated in the
original Securities Exchange Agreement, SGP acquired these shares in
exchange for an aggregate of 3,220,548 additional SGP shares that were
issued to Gary Thompson and Joel Ronne. SGP now owns 100 percent of
Cayley Geothermal Corp.
Stock Options
On May 15, 2009, at a director’s meeting held immediately after the
Annual Shareholders Meeting, SGP granted 757,670 incentive stock options
to its independent directors. These stock options are exercisable
at $0.16 per common share at any time up until the expiration of their 10
year term on May 15, 2019. The stock options were granted under
SGP’s 2009 Stock Option Plan and are subject to Exchange approval.
Gary Thompson, CEO & President of SGP, said “We are pleased that we
achieved a 47 percent reduction in our burn rate quarter over quarter. The
completion of the Cayley acquisition should provide our shareholders and
potential investors clarity with regard to our company’s ownership
structure. We have experienced increased interest from potential
investors in our projects and we remain focused on raising the capital we
require to develop these sites.”
About Sierra Geothermal Power Corp
Sierra Geothermal Power Corp. is a renewable energy company focused on
the exploration and development of clean, sustainable geothermal power. The
Company 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. SGP 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, Chief Executive Officer and Director
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 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 poor
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.
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