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Nevada Exploration closes upsized, oversubscribed placement

Canadian exploration company Nevada Exploration of Vancouver has closed an oversubscribed and previously upsized private placement for gross proceeds of C$1.13 million.
Nevada Exploration closes upsized, oversubscribed placement Nevada Exploration closes upsized, oversubscribed placement Nevada Exploration closes upsized, oversubscribed placement Nevada Exploration closes upsized, oversubscribed placement Nevada Exploration closes upsized, oversubscribed placement

Nevada Exploration is preparing to restart drilling at four Carlin-style targets at South Grass Valley, Nevada

Staff Reporter

The company completed the non-brokered placement of 5.63 million units at C20c each, positioning the company to embark on a new round of drilling at its South Grass Valley project, where it believes the Carlin-type mineral system it has discovered has the architecture and scale to support many gold deposits.

"Based on continued positive results, we've planned an ambitious follow-up drilling program for 2020," said president James Buskard.

"With this financing now complete, we're in discussions with contractors, and subject to availability, our goal is to restart drilling next month."

To date the company has identified four gold targets - Water Canyon, Golden Gorge, Waterfall and Freddie - using an integrated exploration approach which has defined geologic settings similar to those hosting deposits in Nevada's three largest Carlin-type districts, Carlin, Cortez and Getchell, supported by gold and other pathfinders in several sampling mediums.

Buskard previously said the company's next drilling programme would test each target based on their specific geologic settings.

"Importantly, we believe large portions of all of the targets are within the depth range of medium-sized RC drilling, which offers the potential to considerably decrease our drilling costs for this next phase of exploration," he said last month.

The South Grass Valley project is about 50km south-southwest of the Cortez complex operated by the Barrick Gold-Newmont Mining joint venture, Nevada Gold Mines.

Nevada Exploration shares (TSXV:NGE) are currently trading 35% lower compared with a year ago at C26c, which capitalises it at $23 million. The stock has been trading between 15-41c in the past 12 months.