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Nevada Geothermal Power closes US$10m private placement

Nevada Geothermal Power closes US$10m private placement Blue Mountain Faulkner-1, geothermal power plant, Nevada (source: Nevada Geothermal Power)
Alexander Richter 29 Sep 2010

Nevada Geothermal Power Inc. closed a non-brokered private placement with 20,700,000 units issued at a price of C$0.50 per unit raising gross proceeds of C$10,35million (US$10 million).

In an announcement, Canadian listed “Nevada Geothermal Power Inc. (NGP) announces that it has closed its non-brokered private placement. A total of 20,700,000 units were issued at a price of C$0.50 per unit raising gross proceeds of C$10,350,000.

Each unit consists of one common share and one transferable common share purchase warrant, with one warrant entitling the holder to purchase one additional common share of the Company for a period of up to 36 months at a purchase price of C$0.70 per warrant share. If, after January 24, 2011, the closing price of the Company’s common shares on the TSX Venture Exchange is C$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.

KBH Capital Corp. and Global Resource Investments LP acted as the principal finders and will receive a 5% cash commission and unit purchase warrants equal to 5% of the number of units sold to investors introduced to the Company. An aggregate of 1,000,000 finder’s warrants were issued. Each finder’s warrant entitles the holder to acquire one unit for a period of up to 36 months at an exercise price of C$0.50 per unit, subject to the accelerated expiry.

All securities issued under the private placement and all securities issued to finders are subject to a four month hold period.

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.”

Source: Company release via Business Wire