Bank loan

Nevada Copper Corp agrees to non-binding terms for a loan of up to US$70 million to maintain its underground mine

Nevada Copper Corp (TSX:NCU, OTC:NEVDF) has unveiled a proposed financial package that would allow the company to service its Pumpkin Hollow underground mine.

The miner has agreed non-binding terms with its senior lender KfW IPEX-Bank (KfW) and its major shareholder Pala for a loan of up to $70 million through a new extension tranche of its existing senior credit facility with KfW. Pala would provide the funds with the potential participation of other lenders.

The company said $50 million of the total will be committed by lenders (including the remaining promissory note amount of up to $20 million previously announced provided by Pala), while $20 million may be available for a future withdrawal.

As previously reported, Nevada Copper was seeking additional funding to continue its operations, including ramping up the underground mine following the encounter of a weak rock structure in the main decline to the South East Zone, which restricts access to the planned felling is south. areas.

READ: Nevada Copper continues financing discussions; Pumpkin Hollow underground mine updates

Nevada today also told investors it was in talks with KfW, Pala and other lenders with the aim of executing binding agreements in July of this year.

“If implemented, the proposed financing package will provide access to significant additional cash for the Company to maintain the assets of the Pumpkin Hollow underground copper mine (the “Underground Mine”) and pursue certain projects such as completion of the dyke crossing and advancement of the open pit mine feasibility study for the project, and to explore and advance discussions on other financing and strategic options,” he said. added to the press release.

The proposed package is subject to a number of factors and the company said that during its negotiation it intended to make further drawdowns under its previously disclosed US$20 million promissory note. of Pala in order to meet its “immediate cash flow needs”.

The company added the caveat that there can be “no assurance” that final binding agreements for the proposed financial package will be reached, relevant consents will be obtained, transactions will be finalized or other drawdowns under the Pala promissory note will be made. available.

Nevada Copper owns the Pumpkin Hollow copper project in Nevada, which has significant reserves and resources including copper, gold and silver. Its two fully licensed projects include the high-grade underground mine and processing facility, which are now in production, and a full-scale open-pit project, which is progressing towards feasibility.

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