Announced by “Sierra Geothermal Power Corp. (TSX-V: SRA) completed a brokered private placement in which it sold 18,930,800 units at a price of $0.20 per unit for gross proceeds of $3,786,160 (a “Unit”). Each Unit consists of one common share and one common share purchase warrant (a “Warrant”). Each Warrant entitles the holder to purchase one additional common share of the Company at a price of $0.27 until August 5, 2011.

SGP has utilized a group of agents to arrange a brokered private placement. These agents collectively received an aggregate cash commission equal to 7 percent of the amount raised and 1,325,156 agents’ warrants. Each agents’ warrant is exercisable at a price of $0.27 per share until August 5, 2011.

All of the securities issued in this brokered private placement are subject to a four-month hold period and may not be traded until December 5, 2009.

SGP proposes to use the net proceeds of this financing to fund power purchase agreements and related transmission studies, drilling and geophysical activities at its Silver Peak and Reese River projects, and for general corporate and administrative expenses.”

Source: Company announcement via earthtimes.org