- With a strong level of investor interest, Nevada Copper (NCU) has increased its previously announced bought deal offering to C$33 million
- The company intends to issue 200 million units at a price of 16.5 cents each, consisting of one common share and one-half of a share purchase warrant
- Each warrant will be exercisable at a price of $0.22 per share for a period of 18 months
- The proceeds will be used to repay debt owed to Pala Investments and fund the ramp-up of operations at the company’s Pumpkin Hollow Underground Project
- Nevada Copper is currently down 5.13 per cent to $0.18 per share
With a strong level of investor interest, Nevada Copper (NCU) has increased its previously announced bought deal offering to C$33 million.
According to an announcement released yesterday, the Nevada-based copper producer had originally sought to raise roughly $21.5 million by issuing 130.4 million units at a price of 16.5 cents each.
However, with a significant response from investors, Nevada Copper now intends to issue a total of 200 million units at the same price.
These units will be comprised of one common share in the company and one-half of a common share purchase warrant. Each whole warrant will entitle the holder to purchase an additional share at a price of $0.22, exercisable for a period of 18 months from the date of issuance.
An over-allotment option has been granted to the underwriters, under which they will be able to purchase an additional 15 per cent of the units on offer at any time within 30 days of the financing closing. Should this option be exercised in full, the total proceeds will come to $38 million.
In connection with the increased offering, Pala Investments – Nevada Copper’s largest shareholder – has also increased the size of its subscription. Pala was originally set to purchase $11 million worth of units, but will now purchase a total of $13.15 million.
“We are pleased to see the good investor interest in Nevada Copper as we ramp-up operations in a very positive market for copper,” said Mike Ciricillo, CEO of Nevada Copper.
The proceeds will be used for a number of activities, including the repayment of US$15.6 million (C$19.9 million) in debt owed to Pala and the construction and ramp-up of operations at Nevada Copper’s Pumpkin Hollow Underground Project.
Nevada Copper is currently down 5.13 per cent to $0.18 per share at 11:24am EST.
