Western GeoPower Raises $18.4 M for Geothermal Field

Western GeoPower Corp. announced commitments for $18.4 million in financing through a combination of private placement and exercise of warrants and options. Two strategic investors – Iceland-based geothermal developer, Geysir Green Energy will acquire 20,000,000 common shares and Glitnir Bank, the second-largest Icelandic bank, will acquire 5,000,000 common shares.

“The $18.38 million of funding represents most of the equity component of the project finance for drilling the wells and constructing our proposed 25.5 megawatt (net) power plant at The Geysers Geothermal Field in California,” said Kenneth MacLeod, President and CEO of Western GeoPower. “As an added benefit, having Geysir Green Energy and Glitnir Bank as strategic investors reinforces our ability to secure the remainder of the project finance on favorable terms.”

Geysir Green Energy was formed in early 2007 with a mission to become a leading investor in geothermal power projects. Geysir is pursuing expansion through mergers and acquisitions and the development of new projects. Geysir is investing in the development and construction of geothermal plants, acquiring interests in geothermal plants currently owned by power utilities and participating in the privatization of energy companies in various parts of the world.

“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 CEO Asgeir Margeirsson. “We look forward to assisting Western GeoPower in expanding its capacity to acquire and develop additional projects.”

The financial group Glitnir has operations in Iceland, Norway, Sweden, Denmark, Finland, the UK, Luxembourg, Russia, Canada and China and plans to open a US office in New York in the fall of 2007.

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