- Nevada Copper (NCU) has provided financial and operational updates
- Due to a weak rock structure, stope mining at the Pumpkin Hollow Project’s East South Zone will be delayed until August
- The company is working to secure the necessary financing to weather the unexpected delay
- Development continues in the higher-grade East North Zone
- Nevada Copper is a copper producer operating its flagship Pumpkin Hollow Project
- Nevada Copper (NCU) is down by 20.62 per cent trading at $0.385 per share
Nevada Copper (NCU) has provided a series of financial and operational updates.
Restricted access to East South stopes
Stope mining in the East South area of the Pumpkin Hollow Project in Nevada will be delayed due to a weak rock structure in the area’s main ramp. The structure requires additional drilling and geotechnical mitigation work to reinforce the area prior to proceeding.
The stoppage – in addition to slower-than-planned development and longer backfill cycles – is likely to reduce concentrate production for Q2 2022 with a ramp up expected in August.
Progress with dike crossing and access to East North stopes
Development continues for the priority heading through the dike structure and into the East North mining zone. The company expects the East North Zone to have significantly higher copper grades and better geotechnical conditions compared with the East South Zone.
Management intends to complete the second dike crossing by the end of June to allow access to East North.
While the company has reduced its contractor workforce to cut costs, work also continues on the open-pit prefeasibility study and drilling.
Liquidity
Pala Investments, the company’s largest shareholder, will provide funding up to US$20M pursuant to a promissory note and customary conditions. The promissory note has a maturity date of December 31, 2023, and bears interest at 8 per cent per annum on amounts drawn.
The company is in discussions with Pala and other parties for additional financing. Pala has fully disbursed the US$15M accordion to Nevada Copper under their existing credit facility.
In the absence of sufficient financing, the company may not be able to carry on with its business in the ordinary course.
Nevada Copper is a copper producer operating its flagship Pumpkin Hollow Project.
Nevada Copper (NCU) is down by 20.62 per cent trading at $0.385 per share as of 10:54 am EST.