Sierra Geothermal Power receives US$1.4 million through warrent exercise

Alexander Richter 7 Jan 2010

In a release by the company, “Sierra Geothermal Power Corp. [TSX-V: SRA] announces that on January 5, 2010, one of its shareholders exercised 5,000,000 warrants at an exercise price of $0.27 for gross and net proceeds of $1,350,000. SGP intends to use the proceeds for ongoing exploration and general corporate purposes.

“As these warrants were two-year warrants issued in August 2009, we interpret the early exercise of these warrants by a major shareholder as a tremendous vote of confidence in our Company and our short term objective which is to advance at least 50 megawatts to bankable feasibility during 2010,” said Gary Thompson, President and CEO.

In addition, SGP granted 10-year incentive stock options as follows:

• On December 1, 2009, SGP granted 36,000 incentive stock options to an employee. The incentive stock options are exercisable at $0.34 per option;
• On December 18, 2009, SGP granted 75,000 incentive stock options to a director. The incentive stock options are exercisable at $0.27 per option and vested immediately;
• On December 18, 2009, SGP granted an aggregate of 50,000 incentive stock options to certain employees. The incentive stock options are exercisable at $0.27 per option.

As a result of the exercise of these warrants and granting of options, SGP now has 133,315,732 common shares outstanding, 49,608,028 warrants, and 5,671,336 incentive stock options.”

All amounts are in Canadian dollar.

Source: Company announcement