Nevada Exploration Inc. (TSX-V:NGE) (OTCQB:NVDEF) is pleased to announce that it has closed its previously announced non-brokered private placement offering, pursuant to which it has issued 26,448,000 units at a price of $0.125 per Unit, for gross proceeds of $3,306,000 – an increase of approximately 8.9 million Units from the 17.5 million Units contemplated in the news release dated November 30, 2020.
Commenting on the Offering and the Company’s next-stage plans at its flagship South Grass Valley Carlin-type gold project, NGE’s CEO, Wade Hodges: “We sincerely thank our stakeholders for their support. With this financing complete, our goal is to restart drilling as soon as possible.
“As we laid out in our last news release, having confirmed the presence of a large Carlin-type mineral system with our initial Phase 1 drilling program, and then what we believe to be the major controls for the mineralization with our Phase 2 drilling program, the objective of our next phase of drilling is to demonstrate that we can follow these controls to increasing concentrations of gold.
“The results of the Phase 1 and 2 drilling have highlighted the importance of a series of regional-scale, high-angle faults that we believe provided the primary source for the mineralized hydrothermal fluids across the district, which we’ve named the Water Canyon structural corridor. We expect the first holes of our next program to focus on this area for the purposes of: (1) validating our exploration model (that the Water Canyon structural corridor is in fact the primary source of the mineralized hydrothermal fluids), as well as (2) testing for potentially-shallower mineralization associated with the structural corridor, as suggested by a series of intensely-silicified mineralized boulders located at the paleosurface encountered during Phases 1 and 2, similar to the structurally-related breccias hosting Cortez Hills to the north.
“We are in discussions with contractors presently, and expect to be able to provide additional details about our plans and anticipated start date near the end of January.”
Each Unit consists of one common share in the capital of the Company and one Common Share purchase warrant, with each Warrant entitling the holder thereof to acquire an additional Common Share at an exercise price of $0.18 per Common Share for 30 months, provided that if after 12 months from the closing date either or both of the volume-weighted average price or closing price (or closing bid price on days when there are no trades) of NGE’s common shares is greater than $0.25 per share for 10 consecutive trading days, NGE may accelerate the expiry date of the Warrants to the 30th day after the date on which NGE gives notice to the Warrant holders of such acceleration.
Proceeds from the Offering will be used to advance the Company’s South Grass Valley project, fund the acquisition of additional strategic land positions, and for general working capital.
The Offering is subject to final TSX Venture Exchange approval. All securities issued are subject to a four month plus one day hold period expiring April 25, 2021, as well as to any other re-sale restrictions imposed by applicable securities regulatory authorities. In connection with the Offering, the Company paid finders’ fees totalling $72,847.50 in cash, 639,744 in shares, and 1,222,524 in Warrants.
About Nevada Exploration Inc.
With mature, exposed search spaces seeing falling discovery rates, NGE believes the future of exploration is under cover.
The Company has spent 15 years developing and integrating new hydrogeochemistry (groundwater chemistry) and low-cost drilling technology to build an industry-leading, geochemistry-focused, under-cover toolkit specifically to explore for new gold deposits in the more than half of Nevada where the bedrock is hidden beneath post-mineral cover. Nevada’s exposed terrains have produced more than 200 Moz of gold, and experts agree there is likely another +200 Moz waiting to be discovered under cover in Nevada.
NGE has completed the world’s largest hydrogeochemistry exploration program, focused on north-central Nevada, and is now advancing a portfolio of new projects in the heart of the Cortez (Battle Mountain-Eureka) Trend.
NGE’s most-advanced project is South Grass Valley, located south of Nevada Gold Mines’ Cortez Complex. Based on the Company’s work to date at the project, NGE believes it has discovered a mineral system at South Grass Valley with the architecture and scale to support multiple Carlin-type gold deposits (CTGDs), and the potential to host an entire new district. NGE believes South Grass Valley is one of the most exciting new district-scale, Carlin-type projects in Nevada.
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