Western GeoPower secures US$1.35 million under existing loan facility
Alexander Richter
8 Aug 2009
Western GeoPower Corp. obtained an increase in the amount available under its existing secured loan facility (previously announced on January 26, 2009) from US$11 million to US$12.35 million.
In a recent release, “Western GeoPower Corp., announced that it has obtained an increase in the amount available under its existing secured loan facility (previously announced on January 26, 2009) from US$11 million to US$12.35 million. Under the terms of the amended loan facility, the additional tranche of US$1.35 million will be available to the company when certain conditions precedent to that tranche have been met, which are the discharge of any liens other than permitted liens, payment of certain lending fees and expenses, and that no event of default then exists. Interest will be payable on this new tranche at a rate of 1.25% per month and the new tranche will be repayable on June 30, 2010.
The proceeds of the loan may be used for drilling, project management, project finance, development cost, plant equipment, and up to US$500,000 in monthly working capital and general corporate purposes.
The company will file a material change report as soon as practicable after issuing this press release. The material change report will be filed less than 21 days prior to the closing of the amended loan agreement. The timing of the material change report is, in the company’s view, both necessary and reasonable because the terms of the amended loan agreement were settled and approved by the company’s board of directors and the company requires immediate funding to maintain the schedule for its project at The Geysers Geothermal Field and to satisfy current liabilities.”
Source: Company release
