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| July 16, 2008 |
| Nevoro Acquires Benbow Chromite Mine |
TORONTO, ONTARIO--(Marketwire - July 16, 2008) - Nevoro Inc. ("Nevoro") (TSX:NVR) is pleased to announce, subject to regulatory approval, it has acquired, through its indirect wholly owned subsidiary Aurora Metals USA, Inc. the Benbow chromite mine (the "Property") which is adjacent to Nevoro's Stillwater project in Montana (the "Agreement"). The Benbow mine is comprised of 7 patented lode mining claims and 5 unpatented lode mining claims, all in Stillwater, Montana.
Chromite was first discovered in the Stillwater region in 1890 and first developed in 1905. Demand for chromite during the First World War led to several mining operations, including Benbow, which produced 536 long tons of ore until 1918, with sporadic work into the 1930s.
In 1941, Anaconda Copper Corporation began underground development at Benbow and between 1941 and 1943, the Benbow operation and the nearby Mountain View mine (also controlled by Nevoro) produced 364,196 long tons of ore and milled 237,771 long tons yielding 91,164 long tons of concentrate. Between 1939 and 1945 the United States Geological Survey (USGS) undertook a program of mapping, trenching, drilling and sampling leading to the historic resource estimates for the district's four currently known chromite deposits (all now controlled by Nevoro) as listed below:
Million Cr2O3
Area (Tons) (%)
Mountain View 14 23
Benbow East 9 20
Benbow 21 22
Nye Basin 6 22
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Total 50 22
The Benbow mine has historical resources totaling 21 million tons averaging 22% Cr2O3. When combined with Nevoro's existing historical resources, Nevoro now controls approximately 50 million tons grading 22% Cr2O3 which represents the largest chromite resource in the western hemisphere and the seventh largest chromite resource in the world according to USGS OF Report 01-381.
William Schara, President & CEO of Nevoro stated "With increasing ferrochrome prices, which have risen from the US$1 level to around the US$5 level in the past 5 years and the continuing chromium supply problems from South Africa, we think the Benbow mine is a strategic acquisition".
The Property was acquired under a Lease with Option to Purchase from Benbow Mine, Limited Liability Partnership, a Montana LLP (the "Owner"). The Agreement is subject to regulatory approval, title opinion, Nevoro's Board approval, and the satisfactory completion of due diligence investigation of the condition and title to the Property. The basic lease is for 25 years, unless the agreement is sooner terminated, cancelled or extended. The terms of the Agreement call for a signing bonus of US$50,000, subject to the approvals noted above, with payments of US$50,000 on the first through fifth anniversaries, US$75,000 on the sixth through tenth anniversaries, US$100,000 on the eleventh and each subsequent anniversary of the effective date (the "Minimum Payments"). A 5% production royalty (the "Royalty") shall be paid to the Owner, based on Net Proceeds from the production and sale of Minerals from the Property. The Minimum Payments shall constitute advance payments of the Royalty on the Property and shall be credited in Nevoro's favor against Royalty payment obligations. Nevoro has the option to purchase the Property for US$5,000,000. If the option to purchase is exercised after the fifth anniversary, but before the tenth, the purchase price is US$10,000,000, or alternatively, Nevoro has the option to purchase an undivided fifty percent interest in the Property for US$5,000,000, subject to its right to purchase additional portions of ownership of and title to the Property in increments representing 5% of the entire undivided ownership for US$500,000 for each such increment.
About Nevoro
Nevoro is a TSX-listed exploration and development company focused on the discovery of precious and base metals in the western USA. In addition to the recently completed purchase of Aurora and its Stillwater PGE-nickel-copper-cobalt-chromite project in Montana, Nevoro intends to acquire Sheffield Resources Ltd. and its Moonlight copper project in California. Nevoro also holds 11 gold projects in Nevada and Idaho.
For more information, please visit the Nevoro Inc. website at www.nevoro.com.
CAUTIONARY STATEMENT: Technical Information contained herein, including resource calculations, is based on "historical estimates" as such term is defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). These historical estimates should not be relied upon. Nevoro is not treating the historical estimates as current mineral resources or mineral reserves as it has not verified nor prepared this scientific and technical information. All statements, other than historical fact, contained or incorporated by reference in this news release, including any information as to the completion of the corporate transactions described herein, constitute "forward looking statements" within the meaning of certain securities laws, including the "safe harbor" provisions of the Securities Act (Ontario) and are based on expectations, estimates and projections as of the date of this news release. Such "forward looking statements", reflects management's current beliefs and is based on information currently available to management of Nevoro. In some cases, forward-looking information can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue", "intention" or the negative of these terms or other similar expressions concerning matters that are not historical facts. Forward-looking information involves significant risks and uncertainties. A number of factors could cause actual events or results to differ materially from the events and results discussed in the forward-looking information including risks related to investments, conditions of capital markets, economic conditions, dependence on key personnel, interest rates, regulatory change and availability of future financing. These factors should not be considered exhaustive. In addition, in evaluating this information, investors should specifically consider various factors, including risk factors, which may cause actual events or results to differ materially from any forward-looking statement. In formulating forward-looking information herein, management has assumed that business and economic conditions affecting Nevoro will continue substantially in the ordinary course, including without limitation with respect to general levels of economic activity, regulations, taxes, interest rates and that there will be no material changes.
Although the forward-looking information is based on what management of Nevoro considers to be reasonable assumptions based on information currently available to it, there can be no assurance that actual events or results will be consistent with this forward-looking information, and management's assumptions may prove to be incorrect. This forward-looking information is made as of the date of this press release, and Nevoro does not assume any obligation, except as required by law, to update or revise them to reflect new events or circumstances. Undue reliance should not be placed on forward-looking information. | |
| CONTACT INFORMATION:
Nevoro Inc.
William Schara
President & CEO
(416) 363-8238 ext. 224
Email: wschara@nevoro.com
or
Nevoro Inc.
Steven Dawson
Vice President, Corporate Development
(416) 363-8238 ext. 222
Fax: (416) 363-7238
Email: sdawson@nevoro.com
Website: www.nevoro.com
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| INDUSTRY: Manufacturing and Production - Mining and Metals | |
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