Sierra Geothermal Power with private placement of up to $4 million
Alexander Richter
26 Sep 2009
Sierra Geothermal Power Corp. announces a private placement ofor gross proceeds of up to $4,000,000. It plans to use the net proceeds of this financing to fund drilling and geophysical activities at its tier one geothermal projects in Nevada, and for general administrative expenses.
In a release, Sierra Geothermal Power Corp. (SGP) (TSX VENTURE:SRA) announces “that it is undertaking a private placement of up to 18,181,818 units (the “Units”) at a price of $0.22 per unit for gross proceeds of up to $4,000,000. Each Unit will consist of one common share and one non-transferable common share purchase warrant (a “Warrant”). Each Warrant will entitle the holder to purchase one additional common share at a price of $0.30 for a period of two years after closing.
Jacob Securities Inc. will act as lead agent. The lead agent, together with any cooperating brokers, will receive an aggregate cash commission in an amount equal to seven percent of the gross proceeds, together with such number of broker warrants as is equal to seven percent of the number of units sold. Each broker warrant will entitle the holder to purchase one common share at an exercise price of $0.22 for a period of two years after closing.
Sierra Geothermal proposes to use the net proceeds of this financing to fund drilling and geophysical activities at its tier one geothermal projects in Nevada, and for general administrative expenses.
Closing of the private placement is anticipated to occur on or before September 30, 2009 and is subject to the receipt of applicable regulatory approvals including approval of the TSX Venture Exchange. The securities issued will be subject to a four month hold period.”
Source: Company release via Benzinga
