- 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.