NGLPF: Nevada Geothermal Power Inc.: Completes C$11,700,000 Financing; First Tranche of Bought Deal Private Placement
Monday April 24, 9:15 am ET
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Apr 24, 2006 -- Nevada Geothermal Power Inc. (TSX VENTURE:NGP.V - News)(OTC BB:NGLPF.OB - News) -
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This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from registration is available.
This Press Release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We have tried, whenever possible, to identify these forward-looking statements using words such as "anticipates", "believes", "estimates", "expects", "plans", "intends", "potential" and similar expressions. These statements reflect our current belief and are based upon currently available information. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. We undertake no obligation to update or advise in the event of any change, addition, or alteration to the information catered in this Press Release including such forward-looking statements.
Nevada Geothermal Power Inc. (NGP) announced that it has closed the first tranche of its previously announced bought deal private placement of 13,000,000 units ("Units") at C$.90 per Unit for gross proceeds of C$11,700,000. The balance of the offering consisting of up to an additional 6,666,667 units for gross proceeds of C$6,000,000 including the over-allotment option is expected to close on or about April 28th, 2006.
Each Unit consists of one common share and one share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one additional common share for a period of 24 months after the Closing at a price of C$1.40 per common share, subject to an acceleration provision such that if at any time six months after the closing the price per NGP share on the TSX Venture Exchange is C$2.00 or higher for ten (10) consecutive business days, then NGP shall give the investors notice that the Warrants must be exercised or they will expire within 30 days.
Dundee Securities Corporation ("Dundee") acted as lead of a syndicate of underwriters consisting of Dundee, Sprott Securities Inc. and Fraser Mackenzie Limited. The underwriters received a 7% cash commission and were granted an option (the "Compensation Option") to acquire that number of Units that is equal to 8% of the number of Units issued. The Compensation Option entitles the underwriters to purchase Units, exercisable at the offering price of the Units for a period of 24 months following closing of the Offering. The securities are subject to a four month hold period.
The net proceeds from the first tranche of approximately C$10,800,000 will be used to fund further development at the Blue Mountain Geothermal site, development of other existing projects and for working capital.
Nevada Geothermal Power Inc. is a renewable energy company developing geothermal projects in the United States to provide electrical energy that is clean, efficient and sustainable. NGP is committed to the geothermal industry and currently owns a 100% leasehold interest in four properties: Blue Mountain, Pumpernickel, Black Warrior, all of which are ideally situated in Nevada and Crump Geyser in Oregon. An initial 30 MW power plant is planned to begin generating power at the Blue Mountain site subject to further resource drilling and feasibility studies.
Nevada Geothermal Power Inc.
Brian D. Fairbank, P. Eng., President & CEO
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