Rob McEwen Acquires 18.2% Stake in Nevada Pacific Gold
12/9/05
VANCOUVER, BRITISH COLUMBIA, Dec 9, 2005 (CCNMatthews via COMTEX) --
Nevada Pacific Gold Ltd. (TSX VENTURE:NPG) is pleased to announce that, subject to regulatory approval, it has entered into an agreement with Mr. Robert McEwen, of Toronto, Ontario to issue 12,500,000 Units at a price of $0.40 per Unit for aggregate proceeds of $5.0 million. Each Unit is comprised of one common share and one common share purchase warrant, each warrant exercisable to acquire one common share of the Company at an exercise price of $0.50 per share for a term of 2 years.
As a result of the private placement, Mr. McEwen will hold 18.2% of the outstanding shares of the Company and, in the event of exercise of all of the warrants, Mr. McEwen will hold 30.8% of the outstanding common shares of the Company. In accordance with rules of the TSX Venture Exchange, as this constitutes a "change of control", the placement will close in two tranches, the first being for 6,921,213 Units and the second tranche for the balance of the Units will be conditional upon receiving shareholder approval. The Company has called an extraordinary general meeting of shareholders to be held January 23, 2006 for the purpose of approving the second tranche of the private placement. An additional 250,000 Units will be issued to insiders of the Company for proceeds of $100,000.
Mr. McEwen will join the Board of Directors of Nevada Pacific Gold. Rob has been associated with the investment and resource industries for 29 years. Mr. McEwen is the founder of Goldcorp Inc., where he took the company from a market capitalization of $50 million to over $7 billion. He has been honored with such awards as the Northern Miners Man of the Year Award, Ernst & Young's Ontario Entrepreneur of the Year Award in the Energy Category and the PDAC's Developer of the Year.
This transaction supersedes the placement announced September 12, 2005.
Nevada Pacific Gold Ltd. was founded in March 1997. The Company owns the Magistral Gold Mine in Mexico and an exploration property portfolio covering approximately 75 square miles of mineral rights including portions of two significant gold producing belts in the State of Nevada. The Company's Keystone and Limousine Butte projects are under joint venture agreement to Placer Dome U.S. A description of these projects, including maps and photographs can be viewed on the Company's website at www.nevadapacificgold.com.
ON BEHALF OF NEVADA PACIFIC GOLD LTD.
David Hottman, Chairman
This news release contains forward-looking statements that are subject to various risks and uncertainties. The Company's actual results could differ materially from those anticipated in such forward-looking statements as a result of numerous factors that may be beyond the Company's control. Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made.
SOURCE: Nevada Pacific Gold Ltd.
Nevada Pacific Gold Ltd. David Hottman (604) 646-0188 (604) 646-0189 (FAX) www.nevadapacificgold.com
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