NEWS RELEASE
TSX:
NCU
NEVADA COPPER ANNOUNCES US$2,000,000
CONVERTIBLE DEBENTURE
June 26, 2009 - Nevada Copper Corp. (TSX: NCU) (?Nevada Copper?) announces
that it has entered into an agreement (the ?Agreement?) with Zhongtiaoshan
Non-ferrous Metals Group Co., Ltd. (?ZTS?) whereby US$2,000,000 (the
?Principal?) has been received today by way of a convertible debenture (the
?Convertible Debenture?). The Agreement and the transactions contemplated by
the Agreement are subject to the approval of the Toronto Stock Exchange.
ZTS is a leading Chinese copper producer formed in 1956 and based in
Shanxi Province. ZTS has developed into a large diversified copper group that
conducts business in mining, refining and processing. ZTS is currently
one of China?s largest state-owned enterprises.
The Convertible Debenture will mature 18 months from the date of
advancement of the Principal (the ?Maturity Date?) and bears interest at a rate
of 7% per annum calculated monthly and payable in full on the Maturity
Date. Nevada Copper will have the option at any time six months from the
date the Principal is advanced to re-pay the then outstanding amount of the Convertible
Debenture plus accrued interest.
The principal outstanding under the Convertible Debenture will be
convertible into common shares at a deemed price of Cdn$1.00 which represents
approximately an 77% premium over the 30 day weighted average closing price.
The principal outstanding can be converted any time up to the day immediately
preceding the Maturity Date. If Nevada Copper?s common shares trade at a price
of greater than Cdn$1.35 per share for a period of 20 consecutive trading days,
Nevada Copper may, at its option any time after the expiry of the four month
hold period which commences on the date of issue of the Convertible Debenture,
convert the principal outstanding under the Convertible Debenture in whole or
in part into common shares. All common shares issued upon conversion of
the Convertible Debenture will be subject to a four month hold period
commencing on the date of issuance of the Convertible Debenture, under
applicable securities laws.
As part of the Agreement, Nevada Copper has agreed to issue to ZTS such
number of common share purchase warrants (the ?Warrants?) that entitles ZTS to
purchase up to 100,000 common shares of Nevada Copper at a purchase price of
Cdn$1.00 per share at any time over a period of 18 months from the date of issuance
of the Warrants. The Warrants and any common shares issued upon exercise of the
Warrants will be subject to a four month hold commencing on the date of
issuance of the Warrants under applicable securities laws.
Proceeds from the Convertible Debenture will be applied to the Pumpkin
Hollow property and working capital. Nevada Copper has 40.6 million shares
outstanding. For additional information about Nevada Copper please visit our
website at www.nevadacopper.com.
The common shares issuable upon conversion have not been and will not be
registered under the U.S. Securities Act of 1933, as amended, and may not be
offered or sold in the United States absent registration or an applicable
exemption from the registration requirements. This press release shall not
constitute an offer to sell or the solicitation of an offer to buy nor shall
there be any sale of the securities in any State in which such offer,
solicitation or sale would be unlawful.
NEVADA COPPER CORP.
Giulio T. Bonifacio
President
& CEO
For
further information call:
Eugene
Toffolo, Corporate
Communications
Phone:
604-683-8266
Tollfree: 1-877-648-8266
Email: etoffolo@nevadacopper.com