Nevada Copper Receives US$20 Million from Closing of Second Tranche of Restart Financing Package and Provides Update
December 29 2022 - 05:00PM
Nevada Copper (TSX: NCU) (OTC: NEVDF) (FSE: ZYTA) (“Nevada
Copper” or the “Company”) is pleased to announce that the
second tranche of funding of an aggregate of US$20 million provided
by Mercuria Energy (“Mercuria”) and Triple Flag Precious Metals
Corp. (“Triple Flag”) has been released from escrow to Nevada
Copper as part of the Company’s restart financing package (the
“Restart Financing Package”), the first tranche of which closed on
October 28, 2022. In exchange for its US$10 million portion of the
second tranche of funding, Mercuria received 63,411,540 common
shares of the Company. The US$10 million portion of the second
tranche of funding provided by Triple Flag resulted in the
completion of the increase of its existing net smelter returns
royalty on the Company’s open pit project from 0.7% to 2%. In
connection with the closing conditions relating to the second
tranche, the Company and Mercuria have determined that certain
informational and other matters will be addressed post-closing.
Please see the Company’s prior press releases on October 28, 2022
and October 25, 2022 for additional details regarding the Restart
Financing Package, including the use of proceeds therefrom.
The Company continues to progress restart
activities at its Pumpkin Hollow underground copper mine (the
“Underground Mine”), including:
-
Development mining contractor – the Company is
finalizing its selection of a development mining contractor and
expects to award a contract in Q1 2023.
- Capital
projects – the Company is finalizing contract conditions
with a capital projects contractor to complete the installation of
the Geho dewatering system and coarse ore bin and rehabilitation of
the vent shaft. Authorization to proceed with mobilization planning
has been given to allow for an expedient ramp-up once the contract
has been awarded.
-
Underground development work – hoisting of
material to surface recently commenced at the Underground Mine and
other development activities, such as advancing through the final
dike crossing, completion of the maintenance shop and
rehabilitation of ore passes, continue in preparation for
mobilization of a development mining contractor in 2023.
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
PFS stage project.
Randy BuffingtonPresident &
CEO
For additional information, please see the
Company’s website at www.nevadacopper.com, or contact:
Tracey Thom | Vice President,
IR and Community Relationstthom@nevadacopper.com+1 775 391 9029
Cautionary Language on Forward Looking
StatementsThis news release contains “forward-looking
information” and “forward-looking statements” 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 information and
forward-looking statements specifically include, but are not
limited to, statements that relate to development and ramp-up plans
and activities at the Underground Mine and the timing in respect
thereof.
Forward-looking statements and information
include statements regarding the expectations and beliefs of
management. 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 should not be read as
guarantees of future performance and results. They are subject to
known and 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.
Such risks and uncertainties include, without
limitation, those relating to: requirements for additional capital
and no assurance can be given regarding the availability thereof;
the outcome of discussions with vendors; the ability of the Company
to complete the ramp-up of the Underground Mine within the expected
cost estimates and timeframe; the impact of COVID-19 on the
business and operations of the Company; the state of financial
markets; history of losses; 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
Underground Mine; loss of material properties; interest rate
increases; 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; labour 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;
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; dependence on
management information systems and cyber security risks; volatility
of the market price of the Company’s securities; 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, 2021 and the
quarter ended September 30, 2022 and in the section entitled “Risk
Factors” in the Company’s Annual Information Form dated March 31,
2022. The forward-looking statements and information contained in
this news release are based upon assumptions management believes to
be reasonable, including, without limitation: no adverse
developments in respect of the property or operations at the
project; no material changes to applicable laws; the ramp-up of
operations at the Underground Mine in accordance with management’s
plans and expectations; no worsening of the current COVID-19
related work restrictions; reduced impacts of COVID-19 going
forward; the Company will be able to obtain sufficient additional
funding to complete the ramp-up, no material adverse change to the
price of copper from current levels; and the absence of any other
factors that could cause actions, events or results to differ from
those anticipated, estimated or intended.
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. Although the Company has attempted to
identify important factors that could cause actual actions, events,
or results to differ materially from those described in
forward-looking information and statements, there may be other
factors that could cause actions, events or results not to be as
anticipated, estimated or intended. Specific reference is made to
“Risk Factors” in the Company’s Management’s Discussion and
Analysis in respect of the year ended December 31, 2021 and the
quarter ended September 30, 2022 and “Risk Factors” in the
Company’s Annual Information Form dated March 31, 2022, for a
discussion of factors that may affect forward-looking statements
and information. Should one or more of these risks or uncertainties
materialize, should other risks or uncertainties materialize or
should underlying assumptions prove incorrect, actual results and
events may vary materially from those described in forward-looking
statements and information. For more information on the Company and
the risks and challenges of its business, investors should review
the Company’s filings that are available at www.sedar.com.
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 or
information. Accordingly, readers should not place undue reliance
on forward-looking statements or information.
Nevada Copper (TSX:NCU)
Historical Stock Chart
From Feb 2024 to Mar 2024
Nevada Copper (TSX:NCU)
Historical Stock Chart
From Mar 2023 to Mar 2024