Nevada Geothermal Power to raise US$9.5m in private placement

Blue Mountain Faulkner-1, geothermal power plant, Nevada (source: Nevada Geothermal Power)

Alexander Richter 3 Eyl 2010

In a release by the company, “Nevada Geothermal Power Inc. (TSX.V: NGP), today announced that it will proceed with a non-brokered private placement for up to 20,000,000 units at a price of C$0.50 per unit to raise gross proceeds of up to C$10,000,000 (US$9.5m).

Each Unit will consist of one common share (a “Share”) and one transferable share purchase warrant (a “Warrant”), with one Warrant entitling the holder to purchase one additional common share (a “Warrant Share”) of the Company at a purchase price of $0.70 per Warrant Share (the “Offering”).

In the event that the closing price of the Company’s common shares on the TSX Venture Exchange (the “Exchange”) is $1.00 or greater per share for a period of 20 consecutive trading days, the Company may accelerate the expiry date of the Warrants and in such case the Warrants must be exercised within 30 days.

NGP has engaged KBH Capital Corp. (the “Finder”) to assist with the Offering. NGP will pay the Finder a cash finders fee equal to 5% of the gross proceeds raised from subscriptions in the Offering from persons introduced to the Company by the Finder; and issue to the Finder that number of unit purchase warrants (the “Finder’s Warrants”) that are equal to 5% of the number of Units sold to investors introduced to the Company.

The net proceeds of the offering will be used to fund further development at the Blue Mountain Faulkner 1 geothermal power plant, development of other existing projects and for working capital.

The Offering is subject to the acceptance of the TSX Venture Exchange and all securities to be issued in connection with the Offering shall be subject to a four month hold period.

Source: Financial Post