Nevado Resources Corporation
TSX VENTURE : VDO
FRANKFURT : NSV

Nevado Resources Corporation

May 02, 2011 09:00 ET

Nevado Completes a Financing

MONTREAL, QUEBEC--(Marketwire - May 2, 2011) -NEVADO RESOURCES CORPORATION(TSX VENTURE:VDO)(FRANKFURT:NSV) (the "Company" or "NEVADO") is pleased to announce that it has completed a first tranche of its previously-announced non-brokered private placement totaling an aggregate gross proceeds of $5,867,719 in Non Flow-Through Units, Flow-Through Shares and Super Flow-Through Shares sold, the whole subject to the final approval of the TSX Venture Exchange and regulatory authorities. The Company intends to close a second tranche for this private placement.

The securities sold are represented by 4,674,000 Non Flow-Through Units, 5,233,425 Flow-Through Shares and 1,071,427 in Super Flow-Through Shares.

Non Flow-Through Units, at a subscription price of $0.50 per unit, will consist of one (1) class "A" share of the capital stock of the Company (the "Common Share") and one-half (1/2) common share purchase warrant ("NFT Warrant") (collectively, the Common Shares and NFT Warrants are known as the "Non Flow-Through Units"). Each whole NFT Warrant will enable the holder thereof to acquire one (1) Non-flow-through Common Share at $0.70 any time until the date that is twenty four (24) months from the Closing Date (the "Expiry Date").

Flow-Through Shares, at a subscription price of $0.56, will consist of one (1) Common Share on a Flow-Through basis (hereinafter the "Flow-Through Shares").

Super Flow-Through Units, at a subscription price of $0.56 per unit, will consist of one (1) Common Share on a Flow-Through basis (hereinafter the "Super Flow-Through Shares").

All Common Shares, warrants and units issued pursuant to the private placement will be subject to a mandatory four (4) month plus one (1) day holding period.

The private placement is 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 Company'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 Company shall pay to various finders on the closing cash fees equal to a maximum of 7% of the gross proceeds raised by said finders.

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 1227 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 928 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.

Contact Information

  • Nevado Resources Corporation
    Mr. Micheal Curtis
    President and CEO
    514-793-1915
    www.nevado.ca