Nevada Exploration Inc. announces Private Placement, Exploration and Land Acquisition update and Changes to its Board of Directors
April 23, 2007
Nevada Exploration Inc. (TSX-V: NGE) (“NGE”) is pleased to announce the closing of a non-brokered private placement of two million units at $0.60 per unit for gross proceeds of $1.2 million. Each unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant is exercisable for two years into one common share at an exercise price of $0.75. A finder’s fee of $90,000 was paid to an arm’s length party in connection with the financing. All securities issued as part of the private placement are subject to hold periods under Canadian securities laws and the policies of the TSX Venture Exchange (the “Exchange”) and are restricted from trading until August 20, 2007. Completion of the private placement remains subject to the final approval of the Exchange.
Wade Hodges, the President of NGE, stated: “We are delighted that we have been able to obtain additional financing on favourable terms from strategic investors based in the United States. This brings the total funds raised to date to $6.2 million and allows us to accelerate our land acquisition and exploration strategy in Nevada. We are also delighted that we have access to the US financial markets at such an early stage in our development”.
Exploration and Land Acquisition Update
NGE is pleased to report that five additional properties have been staked on Federal land, all of which are now 100% owned by NGE and total an additional 672 claims, or 21 square miles. In addition, two other properties are in the process of being staked for an additional 350 claims and an additional 10 square miles. Also, negotiations are taking place regarding additional targets. This is part of NGE’s stated strategy of acquiring additional properties with gold in water anomalies similar to known gold mines previously identified using the NGE’s proprietary water sampling techniques. Additional water sampling is in progress on each property with initial results coming in ahead of schedule and confirming and further defining RC drilling targets.
Notice level permitting for drilling has been initiated with the BLM on all properties with approval expected without any undue delay. Discussions with drilling companies are in progress for more than 80 RC drill holes on 10 separate properties. Management is of the opinion that NGE’s program is on track for a mid-summer start to drilling on 10 wholly-owned properties, each with gold in water anomalies similar to producing gold mines in Nevada.
Ken Tullar, NGE’s Chief Operating Officer stated: “We are very encouraged about our water sampling protocols and the results we have achieved using this technique to date. Water sampling results have justified the purchase of additional water sampling equipment to speed property evaluations and conduct additional reconnaissance on other targeted properties.” Including NGE’s Fletcher Junction and Hot Pot properties, NGE will have a total of 10 properties or more than 60 square miles under control.
Board of Directors and Advisory Committee
NGE is also pleased to announce the nomination of Jack L. Tindale in replacement of Mr. David Carbonaro, who tendered his resignation to allow this addition - which will add significant geological and technical expertise to the Board of Directors of NGE.
Mr. Tindale is an Exploration Geologist with over 45 years experience in Canada, the United States and Africa, and is skilled in the development of exploration projects through to feasibility studies. He has been involved in the formation, financing and management of a number of junior resource companies and is highly regarded in his field. Mr. Tindale also serves as secretary-treasurer of Lakota Resources Inc. (TSX-V: LAK). His appointment is subject to regulatory approval.
NGE would like to take the opportunity to thank Mr. Carbonaro for his outstanding work as he led NGE in its early stage of development and has been instrumental in advising NGE through its “going-public” process. Mr. Carbonaro will remain involved with NGE, focusing on his duties as Secretary and general counsel to NGE, as well as chairing the newly constituted Advisory Committee. Appointments to the Advisory Committee – which will be focused on adding additional financial and technical expertise to NGE - are now being finalized and will be announced soon.
NGE is an exploration company focused, through its wholly-owned Nevada incorporated subsidiary Pediment Gold LLC, on gold exploration in Nevada. NGE has 100% ownership interest in the mineral rights to exploration properties in Nevada’s major gold trends and is led by a highly experienced management team. NGE developed a proprietary groundwater chemistry exploration technology and has completed the first ever survey of Nevada’s groundwater chemistry. Management believes that the results of NGE’s groundwater chemistry program are significant in that they have demonstrated that Nevada’s gold deposits exhibit recognizable groundwater chemistry. NGE used this technology to identify the Hot Pot and Fletcher Junction targets as well as its recently acquired properties. Permitting with the United States Forest Service for 20 drill sites has been approved on Fletcher Junction and is now in the final, bonding stage. Second phase drilling will be directed by the results of recent groundwater, soil, and soil-gas chemistry surveys.
The Exchange does not accept responsibility for the adequacy or accuracy of this release.
For further information please contact:
Daniel Pharand, Chairman of the Board
Wade Hodges, President
Cautionary Statement on Forward-Looking Information:
This release contains certain "forward-looking statements" including, without limitation, expectations, beliefs, plans and objectives regarding the potential transactions and ventures discussed in this release. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are the risks inherent in mineral exploration, the need to obtain additional financing, the availability of needed personnel and equipment for exploration and development, fluctuations in the price of minerals, and general economic conditions.