Company sells equity on a non-brokered, commercially reasonable basis
By Devika Patel
Knoxville, Tenn., April 19 - Nevado Resources Corp. said it has arranged a C$7.1 million non-brokered private placement of units and shares, which will be conducted on a commercially reasonable basis and replaces an earlier units sale, which priced for between C$4.8 million and C$7.2 million on Feb. 9.
The company will sell up to 7,142,857 flow-through common shares at C$0.56 each for up to C$4 million, up to 1,071,428 super flow-through common shares at C$0.56 each for up to C$600,000 and 5 million non flow-through units of one common share and one half-share warrant at C$0.50 each for C$2.5 million.
The whole warrants are exercisable at C$0.70 each for two years. The strike price reflects a 40% premium to the April 18 closing share price of C$0.50.
Proceeds will be used to advance the iron, titanium and vanadium La Blache property, the company's iron ore and base metal property in Quebec and for general working capital purposes.
Based in Montreal, Nevado owns six properties in Quebec in two separate metallogenic environments, one in high grade iron-titanium-vanadium and one in gold.
| Issuer: | Nevado Resources Corp.
|
| Issue: | Flow-through common shares, super flow-through common shares, non flow-through units of one common share and one half-share warrant
|
| Amount: | C$7.1 million
|
| Agent: | Non-brokered
|
| Pricing date: | April 19
|
| Stock symbol: | TSX Venture: VDO
|
| Stock price: | C$0.50 at close April 18
|
| Market capitalization: | C$9.67 million
|
|
|
| Flow-through shares
|
| Amount: | C$4 million (maximum)
|
| Shares: | 7,142,857 (maximum)
|
| Price: | C$0.56
|
| Warrants: | No
|
|
|
| Super flow-through shares
|
| Amount: | C$600,000 (maximum)
|
| Shares: | 1,071,428 (maximum)
|
| Price: | C$0.56
|
| Warrants: | No
|
|
|
| Non flow-through units
|
| Amount: | C$2.5 million
|
| Units: | 5 million
|
| Price: | C$0.50
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.70
|
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