Nevada Copper Announces Closing of US$115M Project Finance Facility
May 31 2019 - 12:50PM
Nevada Copper Corp. (TSX: NCU) (“
Nevada
Copper” or the “
Company”), the 100% owner
of the Pumpkin Hollow copper project (the
“
Project”) is pleased to announce the financial
close of the previously announced US$115 credit facility with KfW
IPEX Bank GMBH (“
KfW”) dated May 6, 2019.
The net proceeds of drawdown will be used to
advance the construction and development of the Company’s Pumpkin
Hollow underground project.
Matthew Gili, Chief Executive Officer of Nevada
Copper, commented:“We are very pleased to have closed this project
finance facility. KfW IPEX-Bank is a government-backed, tier one
lender and is a highly sought after and long-term project
partner. KfW’s involvement with Nevada Copper not only highlights
the value of the Pumpkin Hollow copper project but also of the team
that is executing on the Company’s business strategy.”
The KfW facility is part of a broader financing
package announced by the Company in its news release dated May 7,
2019.
The benefits of this broader financing
package include:
- Reduces senior debt interest
margin, which is expected to lead to annual interest savings
averaging approximately $5 million calculated over the nine-year
term of the KfW IPEX-Bank Facility
- Extends senior debt maturity from
2025 to 2028
- Amends previous restrictions on
distributions, allowing for, subject to certain conditions, free
excess cash flow to be utilized in Open Pit development,
exploration and payment of dividends
- Provides potential long-term
financing partner for future project expansion with demonstrated
capacity and experience financing some of the world’s largest
mining projects
- Cost Overrun Facility ($26.4M)
funding provides further financing contingency for construction and
ramp-up at the Underground Project
- Working Capital Facility ($35M)
provides additional funding flexibility during production ramp-up
at the Underground Project and interest rate reduction upon
reaching run-rate production at the Underground Project
- Offtake Agreements provide
increased stability of revenue and optimized logistics solution for
the Underground Project while leaving the Open Pit offtake 100%
unencumbered
About Nevada Copper
Nevada Copper's (TSX: NCU) Pumpkin Hollow
project is in construction with a view to the commencement of
copper production in Q4, 2019. Located in Nevada, USA, Pumpkin
Hollow has substantial reserves and resources including copper,
gold and silver. Its two fully-permitted projects include a
high-grade underground project (under construction) and a
large-scale open pit project.
Additional Information
For further information please visit the Nevada Copper corporate
website (www.nevadacopper.com).
NEVADA COPPER CORP.
Matthew Gili, President and CEO
For further information call:
Rich Matthews,VP Investor RelationsPhone: 604-355-7179Toll free:
1-877-648-8266Email: rmatthews@nevadacopper.com
Cautionary Language
This news release includes certain statements
and information that may contain forward-looking information within
the meaning of applicable Canadian securities laws. All statements
in this news release, other than statements of historical facts are
forward-looking statements. Such forward-looking statements and
forward-looking information specifically include, but are not
limited to, statements concerning: the ongoing construction of the
underground mine, the commencement of production at the underground
mine, and other plans of Nevada Copper with respect to the
development, construction and commercial production at the Pumpkin
Hollow Project, ongoing work on a new technical report and the
objectives and results thereof, ongoing exploration activities and
the objectives and results thereof, and ongoing discussions
relating to financing and offtake matters and the objectives and
results thereof.
Often, but not always, forward-looking
statements and forward-looking information can be identified using
words such as "plans", "expects", "potential", "is expected",
"anticipated", "is targeted", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates", or "believes" or the
negatives thereof or variations of such words and phrases or
statements that certain actions, events or results "may", "could",
"would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements or information are subject to known or
unknown risks, uncertainties and other factors which may cause the
actual results, to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements or information.
Forward-looking statements and information are
subject to a variety of risks and uncertainties which could cause
actual events or results to differ from those reflected in the
forward-looking statements or information, including, without
limitation, risks and uncertainties relating to: history of losses;
requirements for additional capital; dilution; adverse events
relating to construction and development; cost overruns; loss of
material properties; interest rates increase; global economy; no
history of production; future metals price fluctuations,
speculative nature of exploration activities; periodic
interruptions to exploration, development and mining activities;
environmental hazards and liability; industrial accidents; failure
of processing and mining equipment to perform as expected; labor
disputes; supply problems; uncertainty of production and cost
estimates; the interpretation of drill results and the estimation
of mineral resources and reserves; changes in project parameters as
plans continue to be refined; possible variations in ore reserves,
grade of mineralization or recovery rates may differ from what is
indicated and the difference may be material; legal and regulatory
proceedings and community actions; accidents, title matters;
regulatory restrictions; permitting and licensing; volatility of
the market price of the Company’s common shares; insurance;
competition; hedging activities; currency fluctuations; loss of key
employees; other risks of the mining industry as well as those
factors discussed in the section entitled "Risk Factors" in the
Company's Annual Information Form dated March 28, 2018. Should one
or more of these risks and uncertainties materialize, or should
underlying assumptions prove incorrect, actual results may vary
materially from those described in forward-looking statements or
information. The Company disclaims any intent or obligation to
update forward-looking statements or information except as required
by law. Readers are referred to the full discussion of the
Company's business contained in the Company's reports filed with
the securities regulatory authorities in Canada. Although the
Company has attempted to identify important factors that could
cause actual results to differ materially, there may be other
factors that could cause results not to be as anticipated,
estimated or intended. For more information on Nevada Copper and
the risks and challenges of its business, investors should review
Nevada Copper's annual filings that are available at
www.sedar.com.
The Company provides no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements.
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