Nevada Copper Corp. (TSX: NCU) (“
Nevada
Copper” or the “
Company”) is pleased to
announce that due to strong investor demand it has amended the
terms of its previously announced “bought deal” public offering of
units of the Company (the “
Units”) to increase the
size of the offering. In connection with the upsizing of the
offering, the Company has entered into an amending agreement with
Scotiabank on behalf of a syndicate of underwriters (collectively,
the “
Underwriters”). Pursuant to the revised terms
of the offering, the Underwriters have agreed to purchase, on a
bought deal basis, 200,000,000 Units of the Company at a price of
$0.165 per Unit (the “
Offering Price”) for
aggregate gross proceeds of $33 million (the
“
Offering”).
Mike Ciricillo, CEO of Nevada Copper commented
“We are pleased to see the good investor interest in Nevada Copper
as we ramp-up operations in a very positive market for copper.”
Each Unit will consist of one common share of
the Company (each a “Common Share”) and one-half
of one common share purchase warrant (each full warrant, a
“Warrant” and collectively the
“Warrants”). Each Warrant will be exercisable for
one Common Share (each a “Warrant Share”) at a
price of $0.22 per Warrant Share at any time for a period of 18
months following closing of the Offering.
The Company has granted the Underwriters an
option, exercisable in whole or in part, at the sole discretion of
the Underwriters, at any time for a period of 30 days from and
including the closing of the Offering, to purchase from the Company
up to an additional 15% of the Units sold under the Offering, on
the same terms and conditions of the Offering to cover
over-allotments, if any, and for market stabilization purposes (the
“Over-Allotment Option”). The Over-Allotment
Option may be exercised by the Underwriters to purchase additional
Units, Common Shares, Warrants or any combination thereof. In the
event the Over-Allotment Option is exercised in full, the aggregate
gross proceeds of the Offering to the Company will be approximately
$38 million.
The Units will be offered by way of a short form
prospectus to be filed in all provinces of Canada, except Quebec.
The Offering is expected to close on or about January 29, 2021,
subject to the receipt of all necessary regulatory and stock
exchange approvals, including the approval of the Toronto Stock
Exchange and applicable securities regulatory authorities.
The Company intends to use the net proceeds of
the Offering for the purposes described in its press release on
January 11, 2021 announcing the Offering. In addition, as a result
of the upsizing of the Offering, (i) US$5 million of proceeds will
be used to fund a cost overrun facility for the purposes of
completing the ramp-up at the Company’s Pumpkin Hollow Underground
Project; and (ii) the balance of the proceeds will be used for
general corporate purposes.
In connection with the upsizing of the Offering,
Pala Investments Limited (“Pala”), the Company’s
largest shareholder, has agreed to increase the amount of its
subscription under the previously announced private placement by
$2.15 million so that it will now subscribe in the aggregate for
approximately $13.15 million of Units at the Offering Price (the
“Concurrent Private Placement”). The subscription
under the Concurrent Private Placement will be satisfied by Pala
tendering certain outstanding indebtedness owed by the Company to
Pala. The Concurrent Private Placement will close concurrently with
the Offering.
This news release does not constitute an offer
to sell or a solicitation of an offer to sell any of securities in
the United States. The securities have not been and will not be
registered under 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 in the production stage, and a large-scale open pit
project, which is advancing towards feasibility status.
NEVADA COPPER
CORP.www.nevadacopper.com
Mike Ciricillo, President and
CEO
For further information
contact:Rich Matthews, Investor RelationsIntegrous
Communicationsrmatthews@integcom.us+1 604 757 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 completion of the
Offering and the Concurrent Private Placement and the timing in
respect thereof and the use of proceeds of the Offering and the
Concurrent Private Placement. There can be no assurance that the
Offering or the Concurrent Private Placement will be completed.
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 and events 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 ability of the
Company to complete the ramp-up of the Pumpkin Hollow Underground
Project within the expected cost estimates and timeframe; the state
of financial markets; the impact of COVID-19 on the business and
operations of the Company; history of losses; requirements for
additional capital and no assurance can be given regarding the
availability thereof; dilution; adverse events relating to milling
operations, 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, construction and ramp-up of the Pumpkin Hollow
Underground Project; loss of material properties; interest rates
increase; global economy; limited 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 from management’s expectations 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 approvals and 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 Company’s 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-looking
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 and information 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 and information.
Nevada Copper (TSX:NCU)
Historical Stock Chart
From Mar 2024 to Apr 2024
Nevada Copper (TSX:NCU)
Historical Stock Chart
From Apr 2023 to Apr 2024