Source: Nevada Copper.
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  • Nevada Copper (NCU) has agreed to non-binding terms for a loan of up to US$70M
  • Counterparties include its senior lender, KfW IPEX-Bank, and its largest shareholder, Pala Investments Limited
  • The companies are working to execute a definitive agreement this month
  • Nevada Copper is a copper producer operating its flagship Pumpkin Hollow Project
  • Nevada Copper (NCU) is down by 19.23 per cent trading at $0.21 per share

Nevada Copper (NCU) has agreed to non-binding terms for a loan of up to US$70M.

Counterparties include its senior lender, KfW IPEX-Bank, and its largest shareholder, Pala Investments Limited.

The loan is a new tranche extension of the company’s existing senior credit facility with KfW.

Pala would provide the funding with potential participation from other lenders.

A total of US$50M would be advanced by the lenders (including the outstanding amount of the existing up to US$20M promissory note from Pala), while US$20M may be available for future draw by Nevada Copper on an uncommitted basis.

The companies are working to execute a definitive agreement this month.

Nevada Copper would allocate the proceeds to maintaining its Pumpkin Hollow underground copper mine, pursuing dike crossing and open-pit project feasibility study work, and exploring further financing and strategic options.

The company intends to draw from the existing up to US$20M promissory note from Pala to meet its immediate cash needs. 

In the absence of stable financing, Nevada Copper may seek creditor protection. It has already received a notice of default from its mining contractor, Redpath. 

Nevada Copper is a copper producer operating its flagship Pumpkin Hollow Project.

Nevada Copper (NCU) is down by 19.23 per cent trading at $0.21 per share as of 9:36 am EST.

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