Company sells equity on a non-brokered, commercially reasonable basis
By Devika Patel
Knoxville, Tenn., May 2 - Nevado Resources Corp. said it settled a C$5.87 million tranche of a C$7.1 million non-brokered private placement of units and shares. The deal is being conducted on a commercially reasonable basis and priced on April 19.
The company is selling 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.
In the first tranche, Nevado sold 5,233,425 flow-through shares, 1,071,427 super flow-through shares and 4,674,000 non-flow-through units.
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.
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
|
| Settlement date: | May 2 (for C$5,867,719)
|
| Stock symbol: | TSX Venture: VDO
|
| Stock price: | C$0.50 at close April 18
|
| Market capitalization: | C$9.15 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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