/NOT FOR DISSEMINATION IN THE UNITED STATES OR TO UNITED STATES NEWSWIRE SERVICES/
VANCOUVER, BC, Sept. 15,
2023 /CNW/ - Nevada Sunrise Metals Corporation
("Nevada Sunrise" or the "Company") (TSXV: NEV) (OTC:
NVSGF) announced today the closing of a first tranche of the
previously-reported non-brokered private placement (the "Offering")
(see Nevada Sunrise news release dated August 16, 2023) consisting of 3,562,500
units (the "Units") at a price of $0.08 per Unit, for gross proceeds of
$285,000 (the "First
Tranche").
Each Unit consists of one common share (a "Share") and one
common share purchase warrant (a "Warrant") of the Company. One
Warrant entitles the holder to purchase one Share of the Company at
a price of $0.12 for a period
expiring 24 months following the closing date of the Offering.
Finder's fees consisting of a total of $5,320 cash and 66,500 finder's units were paid
to: (1) Haywood Securities Inc. - $2,520 cash and 31,500 finder's units, and (2)
Glores Securities Inc. - $2,800 cash
and 35,000 finder's units. Finder's units are exercisable at the
price of a Unit placed ($0.08) for
one Share of the Company and one Warrant, with each Warrant
entitling the finder to purchase one Share of the Company at a
price of $0.12 for a period expiring
24 months following the closing date of the Offering.
All the securities issued in the First Tranche of the Offering
are subject to a hold period of four months plus one day from the
closing date, expiring January 16,
2024.
Proceeds of the Offering will be used for:
- Completion of a National Instrument 43-101-compliant mineral
resource estimate for the Gemini Lithium Project located in
Esmeralda County, Nevada
("Gemini");
- Completion of a preliminary economic assessment (or "PEA") in
conjunction with the release of a maiden mineral resource estimate
for Gemini;
- Exploration work on the Company's mineral properties;
- Other lithium property investigations, and general working
capital.
The Company anticipates closing additional tranches of the
private placement in the coming weeks. Closing of additional
tranches of the Offering are subject to acceptance of the TSX
Venture Exchange.
Participation of Insiders in the
Offering
Three insiders of the Company subscribed for a total
of 230,180 Units in the First Tranche of the Offering.
Participation by the insiders constitutes a related party
transaction as defined under Multilateral Instrument 61-101 ("MI
61-101"). The Company is relying on the exemptions from the
valuation and minority shareholder approval requirements of MI
61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, as
the fair market value of the participation by insiders in the First
Tranche of the Offering does not exceed 25% of the market
capitalization of the Company, as determined in accordance with MI
61-101.
Marketing Agreements
Nevada Sunrise has entered into advertising and marketing
agreements to raise awareness of the Company's Nevada exploration and development activities
with (1) CEO.ca Technologies Ltd. ("CEO.ca") for a period of 12
months effective September 8, 2023 at
a cost of $90,000 before taxes, and
(2) Investing News Network ("INN") for a period of 12 months
effective August 24, 2023 at a cost
of $20,000 before taxes. Each of
CEO.ca and INN participated as subscribers in the First Tranche of
the Offering.
About Nevada Sunrise
Nevada Sunrise is a junior mineral exploration company with a
strong technical team based in Vancouver,
BC, Canada, that holds
interests in lithium, gold, and copper exploration projects located
in the State of Nevada, USA.
Nevada Sunrise owns 100% interests in the Gemini, Jackson Wash and Badlands lithium projects, with
no applicable royalties, all of which are located in the Lida
Valley basin in Esmeralda County,
NV, located just east of the Clayton Valley basin, which
hosts the only producing lithium mine in the United States operated by Albemarle Corp.
at Silver Peak, NV. The Company owns Nevada water right Permit
86863, also located in the Lida Valley basin, near Lida,
NV.
The Company's key gold asset is a 20.01% interest in a joint
venture at the Kinsley Mountain Gold Project near Wendover, NV with CopAur Minerals Inc.
Kinsley Mountain is a Carlin-style gold project hosting a National
Instrument 43-101 compliant gold resource consisting of 418,000
indicated ounces of gold grading 2.63 g/t Au (4.95 million tonnes),
and 117,000 inferred ounces of gold averaging 1.51 g/t Au (2.44
million tonnes), at cut-off grades ranging from 0.2 to 2.0 g/t Au
1. The Company has elected not to contribute to the
2023 exploration program at Kinsley Mountain and expects to incur
dilution of its participating interest in the joint venture to an
approximate 19.0% interest.
1
Technical Report on the Kinsley Project, Elko County, Nevada,
U.S.A., dated June 21, 2021 with an effective date of May 5, 2021
and prepared by Michael M. Gustin, Ph.D., and Gary L. Simmons, MMSA
and filed under New Placer Dome Gold Corp.'s Issuer Profile on
SEDAR (www.sedar.com).
|
Nevada Sunrise has the right to earn a 100% interest in the
Coronado VMS Project, located approximately 48 kilometers (30
miles) southeast of Winnemucca,
NV.
FORWARD LOOKING
STATEMENTS
This release may contain forward–looking
statements. Forward looking statements are statements that are not
historical facts and are generally, but not always, identified by
the words "expects", "plans", "anticipates", "believes", "intends",
"estimates", "projects", "potential" and similar expressions, or
that events or conditions "will", "would", "may", "could" or
"should" occur and include disclosure of anticipated exploration
activities. Although the Company believes the expectations
expressed in such forward–looking statements are
based on reasonable assumptions, such statements are not guarantees
of future performance and actual results may differ materially from
those in forward looking statements. Forward–looking
statements are based on the beliefs, estimates and opinions of the
Company's management on the date such statements were made. The
Company expressly disclaims any intention or obligation to update
or revise any forward–looking statements whether as a
result of new information, future events or otherwise.
Such factors include, among others, risks related to future
plans for the calculation of a mineral resource estimate and a PEA
at the Gemini Lithium Project; reliance on technical information
provided by third parties on any of our exploration properties;
changes in mineral project parameters as plans continue to be
refined; current economic conditions; future prices of commodities;
possible variations in grade or metallurgical recovery rates;
failure of equipment or processes to operate as anticipated; the
failure of contracted parties to perform; labor disputes and other
risks of the mining industry; delays due to pandemic; delays in
obtaining governmental approvals, financing or in the completion of
exploration, as well as those factors discussed in the section
entitled "Risk Factors" in the Company's Management Discussion and
Analysis for the Nine Months ending June
30, 2023, which is available under Company's SEDAR
profile at www.sedar.com.
Although Nevada Sunrise has attempted to identify important
factors that could cause actual actions, events or results to
differ materially from those described in forward-looking
information, there may be other factors that cause actions, events
or results not to be as anticipated, estimated or intended. There
can be no assurance that such information will prove to be accurate
as actual results and future events could differ materially from
those anticipated in such statements. Nevada Sunrise disclaims any
intention or obligation to update or revise any forward-looking
information, whether as a result of new information, future events
or otherwise. Accordingly, readers should not place undue reliance
on forward-looking information.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Nevada Sunrise Metals Corporation