Vancouver, British Columbia [RenewableEnergyAccess.com] Geysir Green Energy, an Iceland-based geothermal developer, has purchased the entire private placement of 250,000,000 shares of Western GeoPower Corp., positioning the company to become a major participant in the United States geothermal market.
Western GeoPower Corp., a Canadian-based renewable energy development company, yesterday announced that it had closed the non-brokered private placement. The entire private placement of 25,000,000 shares at $0.25 per share for proceeds of $6,250,000 was purchased entirely by Geysir Green Energy. The shares will be subject to a four-month hold period ending December 30, 2007.
Following this transaction, Geysir owns 34,333,334 common shares of Western GeoPower, representing approximately 18.8 per cent of Western GeoPower’s outstanding common shares, and 9,333,334 warrants exercisable to purchase one common share of Western GeoPower at $0.35 per share.
Geysir Green Energy was formed earlier this year with a stated mission to become a leading investor in geothermal power projects. The company is pursuing expansion through mergers and acquisitions and the development of new projects.
“Our purchase of an equity interest in Western GeoPower fits perfectly with our plan to be a participant in the largest energy market in the world — the United States,” said Asgeir Margeirsson, Chief Executive Officer of Geysir Green Energy. “We look forward to assisting Western GeoPower in expanding its capacity to acquire and develop additional projects.”