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Source: Nevada Copper Corp.
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  • Nevada Copper (NCU) has announced plans to upsize its marketed public offering to raise aggregate gross proceeds of $114 million
  • The company will issue 148,100,000 units at a price of C$0.77 per unit
  • Each warrant will be exercisable for one common share for a period of 18 months following the closing of the offering at a price of $1.00 per warrant share
  • The company has granted the underwriters an over-allotment option to purchase up to an additional 22,215,000 units, raising potential proceeds to $131 million
  • The offering is expected to close on or about November 29, 2021
  • Nevada Copper is a Canadian-based mining company
  • Nevada Copper Corp. (NCU) is down 26.73 per cent, trading at C$0.74 per share at 1 pm ET

Nevada Copper (NCU) has announced an upsizing and pricing of its previously announced marketed public offering.

The company has upsized the offering from C$75 million to approximately C$114 million. The increase in proceeds will provide the company with additional funds to advance the ramp-up of its underground mine at its Pumpkin Hollow Project and continue exploration and expansion studies at its open pit project at Pumpkin Hollow.

Pala Investments Limited, Nevada Copper’s biggest investor, has committed to purchasing, on a private placement basis, a total of 89,331,682 units to maintain its current shareholding percentage in the company.

Nevada Copper has entered into an underwriting agreement with a syndicate of underwriters led by Scotiabank for the sale of 148,100,000 units at a price of C$0.77 per unit for aggregate gross proceeds of approximately C$114 million.  Each unit will consist of one common share and one-half of one common share purchase warrant. Each warrant will be exercisable for one common share for a period of 18 months following the closing of the offering at a price of $1.00 per warrant share.

The company has granted the underwriters an over-allotment option to purchase up to an additional 22,215,000 units. If the over-allotment option is exercised in full, the aggregate gross proceeds of the offering will be approximately C$131 million.

The offering is expected to close on or about November 29, 2021.

Net proceeds will be used to fund the development and ramp-up of the Underground Mine, the full repayment of bridge loans, Open Pit Project exploration and general corporate purposes.

The net proceeds from the private placement with Pala Investments will be used to retire and prepay an equivalent portion of the existing loans outstanding under the promissory note issued by the company to Pala on June 10, 2021. In the event all or part of the over-allotment option is exercised by the underwriters, Pala has committed to increase the number of units it purchases.

Nevada Copper is a Canadian-based mining company engaged in the exploration, and development of copper and other mineral properties located in the United States.

Nevada Copper Corp. (NCU) is down 26.73 per cent, trading at C$0.74 per share at 1 pm ET.

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