- Mining company Nevada Copper (NCU) has executed binding agreements for a financing package to provide substantial additional liquidity
- The agreements are with several of the company’s existing financing partners, including KfW IPEX-Bank, Concord Resources, and Pala Investments
- Nevada Copper will receive increases to pre-existing facilities and new loan and cost overrun facilities, increasing balance sheet flexibility
- Liquidity from the financing will be used to continue the ramp-up of operations at the company’s Underground Project
- Nevada Copper is up eight per cent and is currently trading for C$0.14 per share
Mining company Nevada Copper (NCU) has executed binding agreements for a financing package to provide substantial additional liquidity.
The executed agreements are with several of the company’s existing financing partners. These include Nevada Copper’s senior lender KfW IPEX-BANK, the company’s offtaker Concord Resources, and its largest shareholder Pala Investments.
The financing package will consist of four complementary facilities, which will collectively improve Nevada Copper’s balance sheet. Two of these facilities are actually increases to facilities which the company already has.
Kfw has agreed to provide approximately C$19.22 million in additional funds to Nevada Copper’s pre-existing senior credit facility. The bank will also defer roughly C$33.32 million of planned debt service until 2023.
Concord Resources has agreed to provide approximately C$6.4 million in extra funds to the company’s pre-existing working capital facility.
Pala Investments intends to provide Nevada Copper with a three-year unsecured loan facility, worth roughly C$33.32 million. The shareholder has also agreed to provide a corporate guarantee for a committed cost overrun facility of approximately C$6.4 million.
Liquidity from this extensive financing will go towards continuing the ramp-up of operations at Nevada Copper’s Underground Project. The company’s CEO, Mike Ciricillo, commented on the company’s new financing package, and on project progress.
“The package not only meets the projected requirements of the ramp-up, but provides additional contingency headroom for the company,” he said.
“With the Main Shaft materials handling system on track for mechanical completion in December, we expect to see hoisting rates increase significantly as planned in the coming weeks during final commissioning,” he added.
Subject to certain conditions, the company expects to close the financing package by the end of 2020.
Nevada Copper is up eight per cent and is trading for $0.14 per share, as of 2:42pm EST.