Nevada Copper Corp. (TSX: NCU) (“Nevada Copper” or the “Company’’)
is pleased to announce that it has agreed to non-binding terms with
its senior lender, KfW IPEX-Bank GMBH (“KfW”) and is engaged in
ongoing discussions with other lenders to provide a combined
financing package of at least US$30 million. The Company is working
with KfW and the other lenders with the aim of executing binding
agreements for loan facilities and being able to receive funding
thereunder by the end of 2020.
The proposed financing package will provide
substantial additional liquidity for Nevada Copper as it ramps-up
operations into 2021. Under the non-binding term sheet with KfW, it
is proposed that KfW will provide a new US$15 million senior loan,
with a three-year tenor, at an interest rate of LIBOR plus 4.9%.
This new KfW loan is expected to have a 12-month repayment holiday
period. In addition, amortization and debt service account payments
under the Company’s existing senior project loan facility with KfW
are expected to be deferred until 2023. The Company is also in the
process of finalizing the specific terms of an additional
complementary financing from other lenders and will provide an
update in due course.
The proposed combined financing package is
subject to, amongst other things, finalization of terms with KfW
and the other lenders, negotiation and execution of definitive
documentation, satisfaction of conditions precedent and regulatory
approval, if required.
As previously announced on November 10, 2020,
Pala Investments Limited (“Pala”), the Company’s largest
shareholder, confirmed that it will continue to provide financial
support to the Company until the end of the year, by which time the
Company expects to complete the new financing package. In
connection with this, Pala has provided the Company with access to
additional liquidity of up to US$15 million in the form of a
promissory note (the “Promissory Note”). The Company made an
initial draw of US$2 million under the Promissory Note, with
subsequent draws available at the Company’s option, subject to
agreed use of proceeds. The Promissory Note has a maturity date of
January 31, 2021, bears interest at 8% per annum on amounts drawn,
and is expected to be repaid through the funds received from the
US$30 million financing package as outlined above. The negotiation
and approval of the Promissory Note was supervised on behalf of the
Company by the independent members of the Company’s board of
directors.
There can be no assurance that the definitive
binding agreements for the proposed financing package as outlined
above will be entered into or that those transactions will be
completed. If the financing package is not completed, then absent
obtaining other financing, the Company may not be able to continue
operations.
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
604 355 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 proposed combined
financing package and the amount, terms and timing in respect
thereof, potential amendments to the Company’s existing senior
credit facility with KfW, and the availability of future drawdowns
under the Promissory Note.
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 a new financing package in a sufficient amount
of funds and within the necessary 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 Mine;
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 Aug 2024 to Sep 2024
Nevada Copper (TSX:NCU)
Historical Stock Chart
From Sep 2023 to Sep 2024