Western GeoPower raises $18.6M

Vancouver geothermal developer Western GeoPower (TSX: WGP) announced yesterday it raised $18.6 million in financing from a private placement and the sale of warrants.

Iceland's Geysir Green Energy put in $6.3 million, grabbing all 25 million shares in the private placement. Geysir now holds an 18.8 percent stake in Western GeoPower.

"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. We look forward to assisting Western GeoPower in expanding its capacity to acquire and develop additional projects," said Ásgeir Margeirsson, CEO of Geysir.

Western GeoPower does cross-border business, developing a 25.5 megawatt geothermal power plant at the Geysers Geothermal Field in Sonoma County, Calif., as well as the South Meager Geothermal Project in British Columbia.

Geysir is a renewable investment group formed by Glitnir Bank, FL Group and VGK Hönnun Engineering (see Glitnir pouring cash into geothermal).

Glitnir, which previously planned to buy 5 million shares in the private placement, has purchased shares through the open market, according to Western Geopower.

"We regard the increased equity participation by Geysir Green Energy and Glitnir as further validation of the company's decision to make a strategic entry into the extremely dynamic market for renewable energy in California," said Kenneth MacLeod, Western GeoPower's president and CEO.

Western GeoPower said 47 million warrants were also exercised for proceeds of $11.7 million, and 4.2 million agents options were exercised for $652,562.

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