Nevada Copper Corp. (TSX: NCU) (“
Nevada
Copper” or the “
Company”) is pleased to
announce that it has completed its previously announced public
offering of units of the Company (the “
Units”),
which included the exercise in full of the over-allotment option
(the “
Over-Allotment Option”) by the underwriters,
which was comprised of syndicate that included Scotiabank, Jett
Capital Advisers, RBC Capital Markets, Haywood Securities Inc.,
Laurentian Bank Securities Inc., National Bank Financial Inc. and
Mackie Research Capital Corporation. The Company issued 230,000,000
Units, including 30,000,000 Units pursuant the Over-Allotment
Option, at a price of $0.165 per Unit (the “
Offering
Price”) for aggregate gross proceeds of approximately $38
million (the “
Offering”).
Each Unit consists 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”). Each Warrant is exercisable for one
Common Share (each a “Warrant Share”) at a price
of $0.22 per Warrant Share until July 29, 2022.
Concurrently with the closing of the Offering,
the Company completed its previously announced private placement of
79,696,970 Units to Pala Investments Limited
(“Pala”), the Company’s largest shareholder, at
the Offering Price (the “Concurrent Private
Placement”). The subscription under the Concurrent Private
Placement was satisfied by Pala tendering certain indebtedness owed
by the Company to Pala.
As previously announced, Pala has agreed to
provide a new credit facility to the Company (the “Credit
Facility”), which is expected to be entered into in the
coming weeks. Upon entry of the Credit Facility, US$15 million will
be available to be newly drawn by the Company.
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 entering into of the
Credit Facility and the timing in respect thereof.
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 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.
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