Nevada Copper Corp.
TSX : NCU

Nevada Copper Corp.

June 26, 2009 17:58 ET

Nevada Copper Announces US$2,000,000 Convertible Debenture

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 26, 2009) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES

Nevada Copper Corp. (TSX:NCU) ("Nevada Copper") announces that it has entered into an agreement (the "Agreement") with Zhongtiaoshan Non-ferrous Metals Group Co., Ltd. ("ZTS") whereby US$2,000,000 (the "Principal") has been received today by way of a convertible debenture (the "Convertible Debenture"). The Agreement and the transactions contemplated by the Agreement are subject to the approval of the Toronto Stock Exchange.

ZTS is a leading Chinese copper producer formed in 1956 and based in Shanxi Province. ZTS has developed into a large diversified copper group that conducts business in mining, refining and processing. ZTS is currently one of China's largest state-owned enterprises.

The Convertible Debenture will mature 18 months from the date of advancement of the Principal (the "Maturity Date") and bears interest at a rate of 7% per annum calculated monthly and payable in full on the Maturity Date. Nevada Copper will have the option at any time six months from the date the Principal is advanced to re-pay the then outstanding amount of the Convertible Debenture plus accrued interest.

The principal outstanding under the Convertible Debenture will be convertible into common shares at a deemed price of Cdn$1.00 which represents approximately an 77% premium over the 30 day weighted average closing price. The principal outstanding can be converted any time up to the day immediately preceding the Maturity Date. If Nevada Copper's common shares trade at a price of greater than Cdn$1.35 per share for a period of 20 consecutive trading days, Nevada Copper may, at its option any time after the expiry of the four month hold period which commences on the date of issue of the Convertible Debenture, convert the principal outstanding under the Convertible Debenture in whole or in part into common shares. All common shares issued upon conversion of the Convertible Debenture will be subject to a four month hold period commencing on the date of issuance of the Convertible Debenture, under applicable securities laws.

As part of the Agreement, Nevada Copper has agreed to issue to ZTS such number of common share purchase warrants (the "Warrants") that entitles ZTS to purchase up to 100,000 common shares of Nevada Copper at a purchase price of Cdn$1.00 per share at any time over a period of 18 months from the date of issuance of the Warrants. The Warrants and any common shares issued upon exercise of the Warrants will be subject to a four month hold commencing on the date of issuance of the Warrants under applicable securities laws.

Proceeds from the Convertible Debenture will be applied to the Pumpkin Hollow property and working capital. Nevada Copper has 40.6 million shares outstanding. For additional information about Nevada Copper please visit our website at www.nevadacopper.com.

The common shares issuable upon conversion have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

NEVADA COPPER CORP.

Giulio T. Bonifacio, President & CEO

The securities offered have not been and will not be registered under the Securities Act of 1933, as amended (the "U.S. Securities Act"), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities law. Certain of the information contained in this news release constitute "forward-looking statements". Such forward-looking statements include the company's expectations related to the closing of the private placement and the use of proceeds. Forward looking statements are not statements of historical fact and factors may cause the actual results, performance or achievements of the Company to be materially different from those set forth in such statements.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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