Nevada Copper says additional funding needed to continue its business

By Wendy Van Sickle

Columbus, Ohio, Feb. 8 – Nevada Copper Corp. said it needs additional financing to complete the ramp-up of its Pumpkin Hollow underground mine or it will not be able to continue doing business, according to a news release.

Nevada Copper said it has generated lower sales through the ramp-up process than previously anticipated, negatively impacting financing requirements.

The company has fully drawn $25 million of debt under a deferred funding agreement with its two largest shareholders, Pala Investments Ltd. and Mercuria Holdings (Singapore) Pte Ltd.

Since then, Pala has been providing sole funding for the company’s operating needs in the form of debt on similar terms to the company’s October 2022 credit facility with Pala, except the debt is unsecured and not guaranteed by the company’s subsidiaries, and it carries interest of SOFR plus 1,000 basis points and matures in December 2024.

Pala is under no obligation to continue to support the company, according to the release.

“The company is also in discussions with other third parties. There is no assurance that additional financing will be obtained in a sufficient amount, or at all. In the absence of securing sufficient funding from Pala or other third parties, the company will not be able to continue carrying on business,” the release states, which cited “several unforeseen setbacks” as hampering progress toward the company’s operational targets.

Nevada Copper is a Vancouver, B.C.-based mining company.

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