Sierra Geothermal Power Corp. (TSX VENTURE: SRA) ("SGP") today
reported that the independent proxy advisor RiskMetrics Group
recommends that Sierra shareholders support the incumbent Board of
Directors in a proxy contest.
"RiskMetrics represents important, independent support for our
view that shareholders should vote in support of Sierra's board and
management," said Gary Thompson, Sierra's President and Chief
Executive Officer. "Now it is crucial for all shareholders to
actively deliver their green proxies to prevent directors with
conflicting loyalties from controlling Sierra's board."
In its report dated January 14, 2010, RiskMetrics said the
incumbent board and management's actions appear reasonable and "the
intricate business relationships among the dissident nominees
appear to be worrisome."
Said RiskMetrics, "The board has the right strategy of becoming
a major independent producer of geothermal power. Two future
milestones: (i) 50 MW bankable feasibility by the end of 2010 and
(ii) power production by 2012, have been conveyed to the market.
$20 million out of the $50 million required for (i) have been
secured. A future financing plan has also been outlined. There is
no contrary evidence to prove Sierra is not on track now."
RiskMetrics closely analyzed the relationships between the
dissident nominees and Sierra's competitor Ram Power, Corp, which
was formed by a merger last year. RiskMetrics also carefully
considered the July 2009 discount price takeover proposal, which
was supported by the dissident and would have resulted in Sierra's
participation in the Ram Power merger.
Said RiskMetrics, "we lean toward the management's explanation
that they did the right thing not to participate in the Ram
Arrangement. In this sense, Sierra, standing alone, has
outperformed the merger by approximately 41% since July 2009."
RiskMetrics also stated that if the dissident's plan is
successful, "the size of the board will be more than doubled, which
is disproportionally large for a venture issuer and will result in
increased expenses and cumbersome administrative process. Given
that the dissident has not met the burden of proving that such a
dramatic change is warranted/this proposal does not warrant
shareholder approval."
Concluded RiskMetrics, "In our view, the dissidents have not met
the burden of proving that a majority change of the Sierra board is
warranted. We have decided to support management for the following
main reasons:
(1) we acknowledge that the Sierra board has the right to
question a seemingly discount offer in the case of the Ram Offer
and the subsequent strong stock performance (of Sierra) has further
proved the board's cautionary approach in July 2009.
(2) management's actions appear reasonable and they have not
made any major strategic missteps (other than missing the equity
financing window in early 2008, partly due to shareholder
opposition).
(3) a slate of dissident nominees comprised entirely of
directors connected to a business combination forming a competing
company (where the dissident has much larger investment) does not
sufficiently safeguard the interests of minority shareholders of
SRA.
Therefore support for the dissident nominees is not
warranted."
Mr. Thompson, the President and CEO of Sierra, added "In my own
discussions with shareholders during this proxy contest, many have
voiced concerns similar to those raised by RiskMetrics about the
dissident campaign. I believe many shareholders have heard our
position and support it, and I urge all of you to vote your Green
proxies to ensure that your company does not fall to the
dissidents."
RiskMetrics is an independent voting advisory service whose
recommendations are followed closely by many institutional
shareholders. It recommended that shareholders use management's
GREEN PROXY to vote against the dissident's resolution to increase
the size of the board to 13 from six, and to vote withhold on the
election of seven new dissident directors. RiskMetrics added that
shareholders should NOT VOTE the dissident's proxy.
How to Cast Your Vote
The Management Circular and related proxy materials, including
the GREEN proxy, have been mailed to persons who were shareholders
of record as of the close of business on December 15, 2009.
Investors and security holders may obtain a free copy of these
documents on our website at www.sierrageopower.com/proxy at the
Canadian securities regulators web site www.sedar.com and by
mail.
You can request the materials by contacting Anthony Srdanovic,
Sierra Geothermal Power Corp., Suite 500 - 666 Burrard Street,
Vancouver, B.C., Canada, V 6C 3P6, or by telephone: 604-642-6179,
or by email asrdanovic@sierrageopower.com or follow the web link
http://www.sierrageopower.com/index.php/proxy.
Sierra and its directors, executive officers and other members
of its management and employees may be deemed to be participants in
the solicitation of proxies from Sierra's shareholders in
connection with the proposed acquisition. Information concerning
the interests of Sierra's management who are participating in the
solicitation is set forth in the Management Circular.
If you have any questions or need assistance in completing your
GREEN proxy, please call Laurel Hill Advisory Group at toll free
1-888-534-1149 or email at assistance@laurelhillag.com and they
will be happy to help.
About Sierra Geothermal Power Corp.
Sierra Geothermal Power Corp. is a renewable energy company
focused on the exploration and development of clean, sustainable
geothermal power. It is based in Vancouver, British Columbia and
listed on the TSX Venture Exchange under the symbol SRA. Its
portfolio of geothermal projects located in Nevada and California
exceeds 365 square kilometres (90,000 acres) and has a combined
total estimated capacity of greater than 500 MW. Sierra intends to
finance development by utilizing a combination of corporate equity,
joint venture partnerships and project debt, with the support of US
government grants and loan guarantees. To find out more about
Sierra Geothermal Power Corp. (TSX VENTURE: SRA) visit our website
at www.sierrageopower.com.
On behalf of the Board of Directors
Gary Thompson, P.Geo
President, Chief Executive Officer and Director
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This news release may contain forward-looking statements. All
statements, other than statements of historical fact, included or
incorporated by reference in this news release are forward-looking
statements, including, without limitation, statements regarding
activities, events or developments that Sierra expects or
anticipates may occur in the future. Forward-looking statements can
be identified by the use of forward-looking words such as "may",
"would", "could", "expect", "intend", "plan", "estimate",
"anticipate", "believe" or "continue" or similar words or the
negative thereof. Forward-looking statements in this news release
include statements that Sierra's milestones include (i) 50 MW
bankable feasibility by the end of 2010 and (ii) power production
by 2012 and that a future financing plan has also been
outlined.
There can be no assurance that the plans, intentions or
expectations upon which these forward-looking statements are based
will occur. Readers are cautioned not to place undue reliance on
these forward-looking statements, which are not a guarantee of
performance and are subject to a number of uncertainties and other
factors that could cause actual results to differ materially from
those expressed or implied by such forward-looking statements.
These factors include general economic and market conditions,
changes in the law, actions of competitors, drill results and other
changes in circumstance, and Sierra's ability to implement business
strategies and pursue its business plan. In addition, all
forward-looking statements involve risks and uncertainties,
including the risks and uncertainties detailed in Sierra's filings
with the applicable Canadian securities commissions, copies of
which are available at www.sedar.com. We urge you to carefully
consider these factors.
All of the forward-looking statements contained in this news
release are expressly qualified in their entirety by this
cautionary statement. The forward-looking statements included in
this news release are made as of the date of this news release and
Sierra undertakes no obligation to publicly update such
forward-looking statements to reflect new information, subsequent
events or otherwise, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Services
Provider accepts responsibility for the adequacy or accuracy of
this release.
Contacts: Sierra Geothermal Power Corp. Gary Thompson President
& CEO (604) 642-6158 / 1-800-563-5631 info@sierrageopower.com
Sierra Geothermal Power Corp. Anthony Srdanovic Investor Relations
(604) 642-6179 asrdanovic@sierrageopower.com
www.sierrageopower.com
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