Nevado Resources Corporation

Nevado Resources Corporation

February 09, 2011 19:15 ET

Nevado Resources Corporation: Announcement of a Private Placement

MONTREAL, QUEBEC--(Marketwire - Feb. 9, 2011) - NEVADO RESOURCES CORPORATION (TSX VENTURE:VDO) (the "Corporation" or "Nevado") is pleased to announce its intent to proceed with a brokered private placement on a commercially reasonable efforts basis for the issuance of a minimum of 8,000,000 and a maximum of 12,000,000 units of the Corporation (the "Units"). Each Unit will consist of one Class "A" share of the capital stock of the Corporation (the "Common Shares") and one Common Share purchase warrant of the Corporation (the "Warrant"). Each Warrant is exercisable for one Common Share at any time prior to the date that is 24 months from the closing date of the private placement at an exercise price of $0.75 per share. Each Unit will be issued at a subscription price of $0.60 per Unit, for total subscriptions of a minimum of Cdn$4,800,000 and a maximum of Cdn$7,200,000 (the "Offering"), the whole subject to the approval of the TSX Venture Exchange and regulatory authorities. Each issued Common Share will be subject to a mandatory 4 month and one 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.

The Corporation shall pay the broker on the closing date a commission equal to 6% of the gross proceeds raised pursuant to the Offering in respect of Units issued and sold. The Corporation shall also issue to the broker an option to acquire that number of Units equal to 7.5% of number of Units issued and sold, at the same purchase price and terms as the Units.

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 6 properties comprising 1,390 mining claims totalling 757 km2 in the Province of Quebec in two separate metallogenic environments, one in high grade iron-titanium-vanadium and one in gold.

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.

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
    Acting President and CEO