"In Preparation for an Early October Drill Program, Announces $1,000,000 Private Placement and Compensation Share Issue"
Nevada Organic Phosphate Inc. (NOP) has announced a non-brokered private placement of up to 20,000,000 units at $0.05 per unit, aiming to raise $1,000,000. The funds will be used for a phase one drill program at the Murdock Property and general working capital.
Each unit consists of one common share and one-half of one share purchase warrant. Each warrant entitles the holder to purchase one additional share at $0.10 for sixty months. The warrant issuance is subject to an acceleration provision if the company’s common shares reach $0.25 for ten consecutive trading days.
The Murdock Property, located near the main highway to Montello/Elko, Nevada, and near the rail head to California, hosts a 6.6-kilometer-long organic sedimentary phosphorus bed. This project is believed to be the only known large-scale organic sedimentary phosphorus project in North America. Additional applications extend the potential strike of phosphorus rock to over 30 kilometers.
NOP has entered into a consultant agreement with an independent consultant for consulting services related to the development of the Murdock Property. The consultant will receive a fee of $5,000 per month and 250,000 shares as bonus compensation upon the company receiving its phosphorus exploration permit in Nevada.
NOP's CEO, Robin Dow, can be reached at T: 604.355.9986 and E: [email protected]. The company has also agreed to issue compensation shares for two other agreements, totaling 215,000 shares.
The news release contains forward-looking statements and information. All shares issued in connection with the Offering are subject to a statutory hold period expiring four months and one day after the Date of Issue. The Canadian Securities Exchange has not reviewed or accepted responsibility for the adequacy or accuracy of this release.
The drill program is expected to begin in early October and end by October 31. The project's location and the potential for large-scale organic sedimentary phosphorus make it an exciting development in the industry.
