Vancouver, British Columbia-based Western Wind Energy Corp. has closed a non-brokered private placement offering of approximately 2.5 million units at a price of C$1.10 per unit for gross proceeds of $2.8 million. Each unit comprises one common share and one-half of one share purchase warrant.
In addition to the offering, Western Wind is in the final stages of closing a corporate loan from an institutional investor for $2 million. The loan bears interest at 10% per year and will be due on June 30, 2011. Western Wind will issue, subject to approval of the TSX Venture Exchange, an aggregate of up to 463,471 bonus shares, or such other number of shares, which may be allowed under applicable exchange policies.
Western Wind intends to use the proceeds from the offering and debt offering to provide retainers to cover Windstar financial legal costs, deposits for transmission-line upgrade work, and road and electrical design work for the company's 120 MW Windstar project in California.
A portion of the proceeds will also be used for deposits for road and electrical design and expenses for the 11 MW combined wind and solar Kingman project in Arizona, as well as for general operations and working capital.
SOURCE: Western Wind Energy Corp.