Nevada Copper Announces Closing of Bought Deal Offering
July 28 2020 - 9:19AM
Nevada Copper Corp. (TSX: NCU) (“
Nevada Copper” or
the “
Company”) is pleased to announce that it has
completed its previously announced public offering of 643,713,553
units of the Company (the “
Units”) at a price of
$0.15 per Unit for aggregate gross proceeds of approximately $97
million (the “
Offering”). Each Unit consists of
one common share of Nevada Copper (a “
Common
Share”) and one-half of one Common Share purchase warrant
(each whole Common Share purchase warrant a
“
Warrant”) of Nevada Copper. Each full Warrant
entitles the holder thereof to purchase one Common Share at a price
of $0.20 per Common Share, for a period of 18 months following the
closing of the Offering.
The net proceeds from the Offering will be used
to fund the Company’s operations, including to continue its
previously-announced accelerated mine development plan and to
re-start and ramp-up production from its Pumpkin Hollow underground
mine, to prepay in full the Company’s US$30 million convertible
loan facility that the Company entered into on March 27, 2020, to
repay other outstanding indebtedness (including short-term
financing provided by Pala Investments Limited in the principal
amount of US$15.1 million) and for general corporate purposes.
This news release does not constitute an
offer to sell or a solicitation of an offer to buy any of the
securities in the United States. The securities have not been and
will not be registered under the United States Securities Act of
1933, as amended, (the “U.S. Securities Act”) or any state
securities laws and may not be offered or sold within the United
States or to U.S. persons unless registered under the U.S.
Securities Act and applicable state securities laws or an exemption
from such registration is available.
About Nevada Copper
Nevada Copper (TSX: NCU) is a copper producer
and owner of the Pumpkin Hollow copper project. Located in Nevada,
USA, Pumpkin Hollow has substantial reserves and resources
including copper, gold and silver. Its two fully permitted projects
include the high-grade underground mine and processing facility,
which is now transitioning to the production stage, and a
large-scale open pit project, which is advancing towards
feasibility status.
NEVADA COPPER CORP.www.nevadacopper.com
Evan Spencer, President and CEO
For further information contact:Rich Matthews,
Investor RelationsIntegrous Communicationsrmatthews@integcom.us+1
604 355 7179
Cautionary Language
This news release includes certain statements
and information that constitute 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 that relate to the anticipated use of
proceeds from the Offering,
Often, but not always, forward-looking
statements and forward-looking information can be identified by the
use of 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 or 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: the state of
financial markets; regulatory approvals; the impact of COVID-19 on
the business and operations of the Company; history of losses;
requirements for additional capital; dilution; adverse events
relating to construction, development and ramp-up, including the
ability of the Company to address underground development and
process plant issues; ground conditions; cost overruns relating to
development, completion and ramp-up of the Pumpkin Hollow
Underground Mine; loss of material properties; interest rates
increase; global economy; no history of production; future metals
price fluctuations and the continuation of the current low copper
price environment; 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;
the outcome of disputes with the Company’s contractors; accidents;
title matters; regulatory restrictions; increased costs and
physical risks relating to climate change, including extreme
weather events, and new or revised regulations relating to climate
change; permitting and licensing; volatility of the market price of
the Common Shares; insurance; competition; hedging activities;
currency fluctuations; loss of key employees; other risks of the
mining industry as well as those risks discussed in the Company’s
Management’s Discussion and Analysis in respect of the year ended
December 31, 2019 and in the section entitled “Risk Factors” in the
Company’s Annual Information Form dated May 15, 2020. 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 forward-information and statements are stated as
of the date hereof. The Company disclaims any intent or obligation
to update forward-looking statements or information except as
required by law.
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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