Nevado Resources Corporation

Nevado Resources Corporation

April 19, 2011 14:53 ET

Nevado Announces a $7,100,000 in Flow-Through, Super Flow-Through and Hard Dollar Financing

MONTREAL, QUEBEC--(Marketwire - April 19, 2011) -NEVADO RESOURCES CORPORATION(TSX VENTURE:VDO)(FRANKFURT:NSV) (the "Corporation" or "NEVADO") is pleased to announce its intent to finalize shortly a non-brokered private placement of a maximum of 7.1 million dollars (the "Offering"), the whole subject to the approval of the TSX Venture Exchange and regulatory authorities. The terms of the private placement announced by the Corporation in its press release dated February 9, 2011, are rectified by the following. The private placement is expected to close prior to the end of this month. The targeted allocation amounts for the Offering are as follows:

  • Super Flow-Through $600,000

  • Flow-Through $4,000,000

  • Non Flow-Through $2,500,000

Pursuant to the Non Flow-Through Offering, Nevado intends to issue a maximum of five million (5,000,000) units at a price of $0.50 per unit ("Unit"). Each Unit will consist of one (1) common share ("Common Share") and one-half (1/2) common share purchase warrant ("NFT Warrant"). Each whole NFT Warrant will entitle the holder thereof to acquire one additional common share of the Corporation at a price of $0.70, for a period of twenty-four (24) months from the Closing Date (the "Expiry Date"). Any NFT Warrant that is not exercised prior to 5:00 p.m. (Montreal time) on the Expiry Date will be cancelled and be of no force or effect.

Pursuant to the Flow-Through Offering, Nevado intends to issue a maximum of seven million one hundred forty-two thousand eight hundred fifty-seven (7,142,857) flow-through Common Shares at a price of $0.56 per flow-through Common Share.

Pursuant to the Super Flow-Through Offering, Nevado intends to issue a maximum of one million seventy-one thousand four hundred twenty-eight (1,071,428) super flow-through Common Shares at a price of $0.56 per super flow-through Common Share.

All the Common Shares issued pursuant to the Offering will be subject to a mandatory 4 month plus one (1) day holding period.

The Offering will be made in Canada to "accredited investors" (as that term is defined under National Instrument 45-106 – Prospectus and Registration Exemptions) or pursuant to other applicable prospectus and registration exemptions.

Funds will be spent primarily to advance the Corporation's higher grade Iron-Titanium-Vanadium La Blache property located just North of Baie-Comeau, Quebec, its iron ore and base metal property in the Fermont region, Quebec, and for general working capital purposes.

The Corporation will pay to various finders, if any, on the Closing Date, a cash fee equal to a maximum of 7% of the gross proceeds raised by said finders pursuant to the Offering.

In response to market conditions for Iron Ore and the drilling results obtained by Nevado, this private placement supersedes et annuls the private placement of a minimum of $4,800,000 and a maximum of $7,200,000 announced by management in February of 2011.

About Nevado Resources Corporation

Nevado Resources Corporation is a mineral exploration company listed under the symbol "VDO" on the TSX Venture Exchange and under the symbol "NSV" on the Frankfurt Exchange. Nevado owns 7 properties comprising 2,318 mining claims totaling 1,227 km2 in the Province of Quebec in three separate metallogenic environments, one in high grade iron-titanium-vanadium, one in copper-gold and a third one in iron.

Nevado's higher grade Iron-Titanium-Vanadium (magnetite-ilmenite) property comprises 2 claim blocks totalling 773 claims for 315 km2 situated in the La Blache Anorthositic Complex, located 145 km north of the city of Baie-Comeau and its port on the St. Lawrence Seaway. In 2011, Nevado plans to quickly advance the property to the drilling stage for NI 43-101 compliant mineral resource delineation.

Nevado's gold assets comprise 5 properties totalling 442 km2 located 10 km south and southeast of Thetford Mines (Eastern Townships, Quebec), approximately 150 km east of Montreal.

Nevado's iron ore and base metal property in the Fermont region, in Quebec, consists of 923 active mining claims, extending over 47,000 hectares (470 Km2) and is composed of 3 major blocs.

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. The statements made in this news release that are not historical facts are "forward-looking statements" and readers are cautioned that any such statements are not guarantees of future performance, and that actual developments or results, may vary materially from those in these "forward-looking" statements.

Contact Information

  • Nevado Resources Corporation
    Mr. Michael Curtis
    President and CEO