Nevada Copper Announces $65 Million Bought Deal Common Share Financing
VANCOUVER, July 7, 2011 /CNW/ --
/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
VANCOUVER, July 7, 2011 /CNW/ - Nevada Copper Corp. (TSX: NCU) ('Nevada
Copper' or the 'Company') is pleased to announce that it has entered into an agreement with a
syndicate of underwriters co-led by Canaccord Genuity Corp. and Scotia
Capital Inc. (the 'Underwriters'), pursuant to which the Underwriters
have agreed to purchase, on a bought deal basis pursuant to a short
form prospectus, 12,050,000 common shares (the 'Common Shares') of the
Company at a price of $5.40 per Common Share for gross proceeds of
$65,070,000 (the 'Underwritten Offering'). In addition, the Company
has granted the Underwriters an option to purchase additional Common
Shares at the Offering price to raise additional gross proceeds of up
to 15% of the Offering (the 'Over-Allotment Option'), exercisable for a
period of up to 30 days after the closing date (the 'Over-Allotment
Option', and together with the Underwritten Offering, the 'Offering').
The Underwriters will receive a cash fee on the sale of the Common
Shares under the Offering equal to 5.5% of the gross proceeds raised,
and broker warrants ('Broker Warrants') equal to 2.5% of the Offering.
Each Broker Warrant shall be exercisable for one common share of the
Company at a price of $6.00 at any time up to 24 months after closing.
The proceeds from the Offering are expected to be used by the Company
for exploration and development of its Pumpkin Hollow deposit in
Nevada, and for general working capital and corporate purposes.
Closing of the Offering is anticipated to occur on or before August 2,
2011 and is subject to certain conditions including, but not limited
to, the completion of satisfactory due diligence by the Underwriters
and the receipt of applicable regulatory approvals including approval
of the Toronto Stock Exchange.
This news release does not constitute an offer to sell or a solicitation
of an offer to buy nor shall there be any sale of any of the Common
Shares in any jurisdiction in which such offer, solicitation or sale
would be unlawful. The Common Shares have not been and will not be
registered under the United States Securities Act of 1933, as amended
(the 'U.S. Securities Act') or the securities laws of any state of the
United States and may not be offered or sold within the United States
or to, or for the account or the benefit of, U.S. persons (as defined
in Regulation S under the U.S. Securities Act) unless registered under
the U.S. Securities Act and applicable state securities laws or
pursuant to an exemption from such registration requirements.
For additional information about Nevada Copper please visit our website
at www.nevadacopper.com.
NEVADA COPPER CORP.
Giulio T. Bonifacio, President & CEO
This news release includes certain statements that may be deemed
'forward-looking statements'. All statements in this release, other
than statements of historical facts, including the likelihood of
commercial mining and possible future financings are forward-looking
statements. Although Nevada Copper believes the expectations expressed
in such forward-looking statements are based on reasonable assumptions,
such statements are not guarantees of future performance and actual
results or developments may differ materially from those in the
forward-looking statements. Factors that could cause actual results to
differ materially from those in forward-looking statements include
unsuccessful exploration results, changes in metals prices, changes in
the availability of funding for mineral exploration, unanticipated
changes in key management personnel and general economic conditions.
Mining is an inherently risky business. Accordingly the actual events
may differ materially from those projected in the forward-looking
statements. Mineral resources that are not mineral reserves do not have
demonstrated economic viability. For more information on Nevada Copper
and the risks and challenges of its business, investors should review
Nevada Copper's annual filings that are available at www.sedar.com.
To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/July2011/07/c3868.html
Eugene Toffolo, Corporate Communications
Phone: 604-683-8266
Toll free: 1-877-648-8266
Email: etoffolo@nevadacopper.com
OR:
Giulio T. Bonifacio, President & CEO
Phone: 604-699-0023