Jan 18 2010
Western Wind Energy Corp. ("Western Wind") is pleased to announce that it is posting a US$2.4 million development fee in favor of Southern California Edison as insurance that Western Wind will complete the construction of the 120 Megawatt Windstar project located in Tehachapi, California. Further to our news release of December 29, 2009 the company anticipates under advice from its turbine vendor, and Engineering Procurement and Construction team, construction will start on August 1, 2010 and commercial operations will occur on March 1, 2011.
It is the opinion of management that the current Western Wind share value does not warrant any meaningful dilution via a private placement and in this regard the company has entered into a corporate loan agreement with two institutional investors for a total of US$2.5 million. The loan bears interest at 10% per annum. A bonus is payable in common shares of the company at a discounted market price of CDN $1.46. A finders fee is payable to PI Financial Corp., who acted as an advisor on the loan, in the amount of 7% cash and 7% warrants. The warrants have a term of two years and an exercise price of CDN $1.82. The bonus shares total 352,534.
The loan is subject to Toronto Venture Exchange final approval.
Source: http://www.westernwindenergy.com/s/Home.asp