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Base Metals Energy Junior Mining Nevada Copper

Nevada Copper Announces Special Shareholder Meeting Results

YERINGTON, Nev., Jan. 25, 2022 (GLOBE NEWSWIRE) — Nevada Copper Corp. (TSX: NCU) (OTC: NEVDF) (FSE: ZYTA) (Nevada Copper” or “Company”) is pleased to announce the results from its Special Meeting of shareholders (the “Meeting”) that was held today. The Warrant Exercise Resolution (as defined below), the only item of business at the Meeting, was overwhelmingly approved by disinterested shareholders of the Company. Strong shareholder support for the Warrant Exercise Resolution was evidenced by approximately 99% of the disinterested shareholders who voted at the Meeting voting in favour of the Warrant Exercise Resolution.

Voting Details

At the Meeting, the disinterested shareholders of the Company, being all shareholders of the Company excluding Pala Investments Limited (“Pala”), the Company’s largest shareholder, and Pala’s associates and affiliates, approved an ordinary resolution authorizing (i) the exercise of 15,000,000 common share purchase warrants (the “Credit Facility Warrants”) that were issued to Pala on November 30, 2021 in connection with the amendment and restatement of the credit facility provided by Pala to the Company; and (ii) if some or all of the Credit Facility Warrants are exercised, the resulting issuance by the Company of common shares to Pala pursuant to the terms of the Credit Facility Warrants (the “Warrant Exercise Resolution”). The results of voting on the Warrant Exercise Resolution are provided below:

Votes For% Votes ForVotes Against% Votes Against
117,875,48498.93%1,275,9781.07%

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

Randy Buffington, President and CEO

For further information contact:
Rich Matthews, Investor Relations
Integrous Communications
rmatthews@integcom.us
+1 604 757 7179

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Base Metals Energy Exclusive Interviews Junior Mining Nevada Copper

Andrew Hecht – Copper Fundamentals and Stock Pick

https://soundcloud.com/proven-and-probable/andrew-hecht-copper-fundamentals-and-stock-pick

Nevada Copper As We Head Into 2022

  • Copper reached a new high in 2021
  • Higher highs are on the horizon in 2022 for three critical reasons
  • A favorable jurisdiction in Nevada- Momentum build and the value proposition is improving
  • Two groups in the know have made significant investments
  • The shares continue to offer value, risk-reward favors the upside for Nevada Copper

The leading stock market indices have been bumpy over the past weeks. The prospects for higher interest rates and taxes in 2022, new COVID-19 variants, inflation at the highest level in decades, and other factors have created uncertainty, which tends to cause indigestion in the stock market. However, many leading stocks remain near or at record highs.

Copper is a bellwether commodity that many market participants look to for clues about the health and wellbeing of the global economy. Copper’s nickname is Dr. Copper because it tends to move higher during economic expansion and lower when the global economy contracts. In May 2021, copper rose to its highest price in history when nearby COMEX futures rose to just shy of $4.90 per pound, and LME forwards moved to over $10,700 per ton for the first time. Over the past year, copper has taken on a new role, increasing the demand side of its fundamental equation. The red nonferrous metal is a critical requirement for decarbonization, leading Goldman Sachs to call copper “the new oil.”

In the world of commodities, higher prices and growing demand lead to more production. However, the global copper market faces a challenge as it will take years for new supplies to come to market, creating deficits that push the price higher. While copper corrected since the May high, the price remained around $4.40 per pound level as of December 24.  

Locating value in the US stock market is not easy these days. Nevada Copper Corp. (NEVDF) is a promising emerging US producer. Two seasoned commodity groups recently invested in NEVDF, seeing tremendous value in the burgeoning producer.

Copper reached a new high in 2021 Copper closed 2020 at the $3.52 per pound level on the nearby COMEX futures contract and $7,757 per ton on the three-month LME forwards.

Source: CQG

The chart highlights COMEX copper futures move to a high of $4.8985 in May. With the active month March contract at the $4.40 level on December 24, the price moved 25% higher in 2021 with only one week until 2022.

Source: LME

Three-month copper forwards rose to a high of $10,724.50 in 2021 and was at the $9,568 level on December 24, 23.35% higher than at the end of 2020.

While copper is closing 2021 below the year’s high, the trend remains bullish with impressive gains since the end of last year.

Higher highs are on the horizon in 2022 for three critical reasons

Three reasons support higher highs and new all-time peaks in the copper market in 2022 and beyond:

  • Copper is critical for electric vehicles (EVs), wind turbines, and other clean energy initiatives. The red metal is a crucial ingredient for decarbonization, making the fundamental equation’s demand-side grow.
  • It takes eight to ten years to bring new copper production online from exploration to output. Copper is still in the early phases of expanding global production, with the leading mining companies scrambling to find new ore deposits. As demand increases, supplies will struggle to keep pace over the coming years.
  • Inflationary pressures will continue to rise, putting upward pressure on all commodities, and copper is no exception. At the latest December FOMC meeting, the US central bank forecast a 0.90% Fed funds rate for 2022 and a 1.60% rate for 2023. Even if inflationary pressures recede, real interest rates are likely to remain negative, which is bullish for raw material prices in the coming years.

Copper faces an almost perfect bullish storm for the coming years. Goldman Sachs’s forecast of $15,000 per ton by 2025 would put nearly COMEX futures over the $6.80 per pound level. While higher prices will encourage more production, existing mines cannot keep pace with the rising demand.

Chile is the world’s leading copper producer. The recent election of Gabriel Boric, a 35-year-old former student activist who carries a new generation’s socialist dreams to the presidential palace, threatens Chile’s capitalist economy fueled by copper output. Taxes are likely to rise along with wages and addressing climate change could cause a new wave of regulations that weigh on copper output over the coming years. Moreover, the new Chilean government could move to nationalize copper mines, which would impact output and efficiency. The bottom line is that a supply-demand deficit in the global copper market is likely to widen over the coming years, putting upward pressure on the red nonferrous metal’s price.

A favorable jurisdiction in Nevada- Momentum build and the value proposition is improving

The world’s leading copper producers are searching the globe for new reserves and output. Australian mining giant BHP recently said it is considering a challenging Democratic Republic of Congo copper project. The DRC is notorious for political and regulatory issues.

Meanwhile, the US remains a friendly mining environment, and Nevada is a state that supports the industry and is mineral-rich.

Nevada Copper (NEVDF) is an emerging producer with a lot going for it these days. The company mines copper in Nevada in the USA, and the Canadian Fraser Institute ranks the state as the world’s #1 mining jurisdiction. In 2021, momentum has been building for NEVDF:

  • Underground mine operation improvements have resulted in 100% growth in development rates.
  • New equipment in the second half of 2021 has accelerated development.
  • An operational efficiency plan took effect in the second half of 2021 and is forecasted to increase output in H1, 2022.

To put more meat on the bone, in a December 21 press release, the company provided updates on its Pumpkin Hollow underground mine project:

  • Nevada Copper is on track to advance over 1,100 lateral equivalent feet of development in December 2021.
  • Development is running at the highest rate for 2021, with December nearly 50% higher than November and almost 100% above the level in August 2021.
  • New equipment should enhance further development and growth in January 2022.
  • Ventilation fan infrastructure should be completed in Q1 2022.
  • Mining of the Sugar Cube, the first high-grade area in the East North Zone of the underground mine, is on schedule for Q1 2022.

In December, CEO Randy Buffington said, “We are on track to complete 1,100 feet of lateral development this month, which puts the Company in a position to mine the first stope of high-grade Sugar Cube as planned next month.

Accelerated development increases NEVDF’s value proposition:

  • The current enterprise value is less than the value of the company’s machinery and equipment.
  • NPV at current prices is close to the US $3 billion level.
  • The company will be cash-flow positive in 2022.
  • Open-pit mining development will accelerate in 2022.

The company’s prospects are compelling, leading two influential groups to invest in NEVDF.

Two groups in the know have made significant investments

Solway Investment Group is a private international mining and metals group with headquarters in Switzerland. Solway specializes in nickel production with mines and smelting plants in Guatemala, Ukraine, Russia, Indonesia, and Macedonia. The group has over 5,000 employees, is expanding its focus in battery metals, and recently invested US$30 million for a 10% stake in Nevada Copper.

Mercuria Energy Group Ltd. is a multinational commodity trading company active in global energy, metals, and agricultural markets. The company dates back to 2004 when two ex-Phibro executives, Marco Dunard and Daniel Jaeggi departed after Citigroup sold Phibro to Occidental Petroleum. The company recently closed an oversubscribed $2.2 billion multi-year secured borrowing base credit facility with a collection of international financial institutions. Mercuria is one of the world’s leading and growing commodities trading companies, with core exposure in energy. Mercuria’s goal is a 50% portfolio in renewable energy over the coming five years and invested US$30 million for a 10% stake in Nevada Copper.

Solway and Mercuria are top organizations in the international commodities business, with tentacles reaching across the globe. Both companies put their capital up as they see the compelling potential for Nevada Copper’s properties and business plan.

The shares continue to offer value, risk-reward favors the upside for Nevada Copper

Nevada Copper shares remain inexpensive at the end of December 2021. Aside from the Solway and Mercuria investments, insider buying is another bullish sign for the company. After a recent blackout period, CEO Randy Buffington purchased 200,000 shares, and the company’s directors have been buyers of the shares. Nevada Copper shares (NEVDF) peaked at $2.40 value in May when copper prices reached the high at nearly $4.90 per pound. Copper closed around the $4.40 level on December 23, and NEVDF shares having fallen dramatically in early December hitting yearly lows, could be a golden opportunity for investors that see the same potential as Solway and Mercuria.

Source: Barchart

The chart shows that NEVDF shares corrected to a low of 38.78 cents on October 1 as nearby copper futures moved to test the $4 per pound level. At 53.0 cents per share on December 23, Nevada Copper had a $236.328 million market cap.

Development companies are risky businesses as their future depends on delivering from their mines. The backing of two well-established commodities trading and investment companies, insider buying, and accelerated progress are positive signs for the company as we head into 2022.

New copper production is scarce, and mining companies are scouring the globe for new reserves. Nevada copper’s location, proven and probable reserves, management, progress, and investors bode well for the company’s future. Further progress could transform NEVDF from an emerging producer to a takeover candidate or established producer as the world’s leading miners are hungry for output. Risk is always a function of reward with any investment. At 53.0 cents per share, NEVDF’s potential compensates for the risk.

Any investment involves substantial risks, including, but not limited to, pricing volatility, inadequate liquidity, and the potential complete loss of principal. This document does not in any way constitute an offer or solicitation of an offer to buy or sell any investment, security, or commodity discussed herein, or any security in any jurisdiction in which such an offer would be unlawful under the securities laws of such jurisdiction.

Categories
Base Metals Energy Junior Mining Nevada Copper

Nevada Copper Operational Performance Continues to Accelerate

YERINGTON, Nev., Dec. 21, 2021 (GLOBE NEWSWIRE) — Nevada Copper Corp. (TSX: NCU) (OTC: NEVDF) (FSE: ZYTA) (“Nevada Copper” or the “Company”) today provided a further positive operations update at its underground mine at the Company’s Pumpkin Hollow Project (the “Underground Mine”).

December Underground Operations Highlights:

  • Development Achieves Record Rates
    • In line with the continued ramp-up, the Company is on track to advance over 1,100 lateral equivalent feet of development in December.
    • Development is running at the highest rate for 2021, and rates achieved month-to-date in December are almost 50% higher than November (representing almost a 100% increase since August 2021).
  • Additional Mobile Equipment Delivered and Commissioned
    • The first planned bolter has been delivered and is now operating underground, resulting in increased development rates and supporting further increases continuing into Q1 2022.
    • Two additional bolters are on track to be delivered to the underground mine in January enhancing further development rates.
  • First Delivery of Surface Ventilation Fans Arrived on Site
    • The first of three deliveries of the ventilation fan infrastructure has arrived on site, with full installation and commissioning continuing to be planned to be completed in Q1 2022.
    • The final package delivery is expected for the first week of January 2022.
  • Preparing to Mine Sugar Cube
    • Mining of the Sugar Cube, the first high-grade area in the East North Zone of the underground mine, continues to be planned for Q1 2022 (News Release, November 30, 2021).

“The Company continues to build on the operational improvements achieved over the past two quarters, providing further acceleration to the development and production ramp-up,” stated Randy Buffington, President and Chief Executive Officer. “The implementation of additional equipment, manpower and operational efficiencies led to the highest development rates attained this year. We are on track to complete 1,100 feet of lateral development this month, which puts the Company in a position to mine the first stope of the high-grade Sugar Cube as planned next month.”

Qualified Persons
The technical information and data in this news release was reviewed by Greg French, C.P.G., VP Head of Exploration of Nevada Copper, and Neil Schunke, P.Eng., a consultant to Nevada Copper, who are non-independent Qualified Persons within the meaning of NI 43-101.

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

Randy Buffington, President and CEO

For further information contact:
Rich Matthews, Investor Relations
Integrous Communications
rmatthews@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 mine development, production and ramp-up objectives and equipment installation.

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: the ability of the Company to complete the ramp-up of the Underground Mine within the expected cost estimates and timeframe; requirements for additional capital and no assurance can be given regarding the availability thereof; the impact of the COVID-19 pandemic 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 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; 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 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, 2020 and in the section entitled “Risk Factors” in the Company’s Annual Information Form dated March 18, 2021. Should one or more of these risks or 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 or statements are stated as of the date hereof. Nevada Copper disclaims any intent or obligation to update forward-looking statements or information except as required by law. Readers are referred to the additional information regarding Nevada Copper’s business contained in Nevada Copper’s reports filed with the securities regulatory authorities in Canada. 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 statements, there may be other factors that could cause actions, events or results not to be as anticipated, estimated or intended. For more information on Nevada Copper and the risks and challenges of its business, investors should review Nevada Copper’s filings that are available at www.sedar.com.

Nevada Copper 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.

Categories
Base Metals Energy Junior Mining Nevada Copper

Nevada Copper Provides Operational Activity Update

YERINGTON, Nev., Dec. 09, 2021 (GLOBE NEWSWIRE) — Nevada Copper Corp. (TSX: NCU) (OTC: NEVDF) (FSE: ZYTA) (“Nevada Copper” or the “Company”) today provided an operations update and overview of the H2 2021 milestones achieved at its underground mine at the Company’s Pumpkin Hollow Project (the “Underground Mine”).

The Company has experienced a significant reset and demonstrated significant operational and corporate improvements in H2 2021. These milestones provide a foundation for an accelerating pace of operational ramp-up.

“I am very pleased with the progress the Company has made in H2 of this year,” stated Randy Buffington, President and Chief Executive Officer. “Our mining rates, a key metric for ramp-up production advancement, have been increasing month over month. We are now seeing the efficiencies generated from the advanced management systems implemented in Q3 of this year. The building blocks are in place for increased mining rates and production as we move into H1 of next year.”

Operations

  • Equipment availabilities materially improved: 14% improvement from 65% to 74% in total fleet availability since the beginning of Q4, 2021. Additional equipment expected to be added in Q4, 2021.
  • Contractor performance improved: Productivity increased by 31% from 1.75 to 2.29ft per person shift between October and November resulting in substantial improvement in operating efficiency as well as cost reductions.
  • Increased mining development rates: Sequential monthly increases in development rates, a key leading indicator of production ramp-up, delivered since management changes in August 2021. Rates achieved in December are currently 50% higher than August. Commissioning of additional bolters planned to deliver a further 50% increase in development rates in the coming weeks.
  • Consistent mill performance: Milling operations have performed well throughout 2021, with batch processing reaching 4700tpd, recoveries over 90% and concentrate quality performing in-line with design specifications.
  • Dike crossing completion: First crossing of the water bearing dike was completed in August 2021, and the second crossing is anticipated to occur later this year. No further crossings are required during the ramp up to 3ktpd expected in H1, 2022.
  • Ventilation infrastructure in place: All underground ventilation infrastructure was completed in H1 2021. Final addition of surface ventilation fans remains on schedule, with commissioning planned to be completed in January, 2022, with ventilation no longer expected to be a constraint to production rates thereafter.

Corporate

  • Transformational financing completed:
    • Closed C$125m public equity offering in November 2021, with a significant portion of the funds provided by select mining sector corporates. This was further complemented by broad participation from other new and existing institutional investors.
    • The upsized financing provides additional liquidity to fund exploration and expansion studies at the Company’s open pit project (the “Open Pit Project”) in addition to the ramp-up of Underground Mine.
  • Significantly enhanced balance sheet flexibility:
    • Long term debt reduced by approximately 30% during Q4, 2021.
    • First debt repayment under the Company’s senior credit facility with KfW-IPEX Bank deferred by 2 years to July 2024.
  • Hiring of key management positions:
    • Joining as Chief Executive Officer on October 6, 2021, Randy Buffington brings substantial operational and development experience in both underground and open pit mines in Nevada and internationally.
    • 8 key operational management positions added in H2 2021, resulting in operational improvement and enhanced planning and execution systems.
  • Development
    • Developed program for Open Pit Project resource extension and feasibility study: The budget and execution plan have been defined and the Company expects that drilling to support the updated open pit feasibility study will commence in Q2 2022, potentially sooner depending on drill rig availability.
    • Open Pit Project Decarbonization Program Advanced:
      • Solar power studies were completed in 2021, which show:
        • Pumpkin Hollow benefits from ample sun and land to support a large solar project with the capacity to meet a significant portion of the Open Pit Project’s power requirements;
        • The solar potential at the site is up to 200MW;
        • The already low grid power costs in Nevada could be further reduced through an on-site solar plant; and
        • A third-party solar project provides an option to remove upfront power infrastructure costs from the Open Pit Project.
      • Electric fleet study for mobile mining equipment fleet electrification at the Open Pit Project was completed by US-based energy and sustainability consultant Sprout Energy, which concluded:
        • Scope 1 carbon emissions over the life of mine could be reduced by approximately 10% of total estimated emissions; and
        • Fuel and maintenance costs could be reduced by up to approximately US$200m over the life of mine.
  • Exploration
    • Undertook further property reconnaissance on the Copper Ridge Area, which is located to the northeast of the Open Pit.
    • Defined target exploration plan: Initiated further refinement and interpretation of the newer geophysics in key areas such as Tedeboy, Tedeboy porphyry and Copper Ridge.
    • Initial grab sampling and mapping of these areas have resulted in areas with high grade copper samples. Surface mapping and sampling are planned for Q1 of 2022, supporting the commencement of drilling in Q2 2022.

Qualified Persons
The technical information and data in this news release was reviewed by Greg French, C.P.G., VP Head of Exploration of Nevada Copper, and Neil Schunke, P.Eng., a consultant to Nevada Copper, who are non-independent Qualified Persons within the meaning of NI 43-101.

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

Randy Buffington, President and CEO

For further information contact:
Rich Matthews, Investor Relations
Integrous Communications
rmatthews@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 mine development, production and ramp-up objectives, exploration activities, equipment installation and the completion of a new feasibility study.

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: the ability of the Company to complete the ramp-up of the Underground Mine within the expected cost estimates and timeframe; requirements for additional capital and no assurance can be given regarding the availability thereof; the impact of the COVID-19 pandemic 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 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; 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 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, 2020 and in the section entitled “Risk Factors” in the Company’s Annual Information Form dated March 18, 2021. Should one or more of these risks or 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 or statements are stated as of the date hereof. Nevada Copper disclaims any intent or obligation to update forward-looking statements or information except as required by law. Readers are referred to the additional information regarding Nevada Copper’s business contained in Nevada Copper’s reports filed with the securities regulatory authorities in Canada. 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 statements, there may be other factors that could cause actions, events or results not to be as anticipated, estimated or intended. For more information on Nevada Copper and the risks and challenges of its business, investors should review Nevada Copper’s filings that are available at www.sedar.com.

Nevada Copper 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.

Categories
Base Metals Energy Junior Mining Nevada Copper

Nevada Copper Provides Update on Operational Advances

YERINGTON, Nev., Nov. 30, 2021 (GLOBE NEWSWIRE) — Nevada Copper Corp. (TSX: NCU) (OTC: NEVDF) (FSE: ZYTA) (“Nevada Copper” or the “Company”) today provided an update on its operations, including advances at the Company’s underground mine at its Pumpkin Hollow Project (the “Underground Mine”) and an update on its 2022 development plan.

Underground Mine Operations Highlights

  • Lateral Development Rates Continue to Rise. The Company has advanced approximately 760 lateral equivalent feet in the past 30 days, a 20% increase in average daily footage from the previous 30 days. Lateral development continues on multiple headings, providing access to ore mining zones in the East South orebody and advancing development towards the East North orebody.
  • Sugar Cube to be Blasted Shortly. The high-grade Sugar Cube zone is planned to be drilled in December and mining is expected to commence in early Q1 2022. This will be the first stope mined in the East North orebody, which is expected to have higher quality ground conditions and significantly larger stope sizes.
  • Processing Plant Operating Well. The mill continues to run at design specifications with the grinding, flotation, thickening, and concentrate filtration circuits performing well mechanically. The Company anticipates increased production and recovery rates with the addition of the Sugar Cube zone to the processing plant’s ore feed in Q1 2022.
  • Surface Ventilation Fans on Schedule. The surface ventilation fans are on schedule to arrive on site in approximately 3 weeks with installation and commissioning expected to be completed on time in line with the demands of the mine plan.

2022 Development Plan Update

  • Open Pit Drilling and Progressing. With additional funding received from the Company’s recent public equity offering, the Company intends to undertake an infill drilling campaign and to update its open pit studies to reflect opportunities for increased scale, larger resource and other optimization workstreams. Further updates on the Company’s 2022 development plan will be released shortly.

“I am pleased with the operational advances we have achieved this month, as we build on the progress from Q3,” stated Randy Buffington, President and Chief Executive Officer. “Our development rates continue to increase on a weekly basis and will soon provide access to the larger high-grade stopes, which is expected to result in increased ore feed delivered to our fully operational processing plant for a step further in our ramp-up progression.”

Qualified Persons
The technical information and data in this news release was reviewed by Greg French, C.P.G., VP Head of Exploration of Nevada Copper, and Neil Schunke, P.Eng., a consultant to Nevada Copper, who are non-independent Qualified Persons within the meaning of NI 43-101.

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

Randy Buffington, President and CEO

For further information contact:
Rich Matthews, Investor Relations
Integrous Communications
rmatthews@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 mine development, production and ramp-up objectives, equipment installation, drilling programs and the completion of a new feasibility study.

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: the ability of the Company to complete the ramp-up of the Underground Mine within the expected cost estimates and timeframe; requirements for additional capital and no assurance can be given regarding the availability thereof; the impact of the COVID-19 pandemic 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 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; 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 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, 2020 and in the section entitled “Risk Factors” in the Company’s Annual Information Form dated March 18, 2021. Should one or more of these risks or 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 or statements are stated as of the date hereof. Nevada Copper disclaims any intent or obligation to update forward-looking statements or information except as required by law. Readers are referred to the additional information regarding Nevada Copper’s business contained in Nevada Copper’s reports filed with the securities regulatory authorities in Canada. 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 statements, there may be other factors that could cause actions, events or results not to be as anticipated, estimated or intended. For more information on Nevada Copper and the risks and challenges of its business, investors should review Nevada Copper’s filings that are available at www.sedar.com.

Nevada Copper 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.

Categories
Base Metals Energy Junior Mining Nevada Copper

Nevada Copper Announcrs Closing of Public Offering

YERINGTON, Nev., Nov. 29, 2021 (GLOBE NEWSWIRE) — Nevada Copper Corp. (TSX: NCU) (OTC: NEVDF) (FSE: ZYTA) (“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 partial exercise of the over-allotment option (the “Over-Allotment Option”) by a syndicate of underwriters that included Scotiabank, Jett Capital LLC, RBC Capital Markets, Haywood Securities Inc. and Research Capital Corporation. As announced on November 11, 2021, the public offering (the “Offering”) was upsized due to strong demand, including from new and existing institutional investors and mining sector corporates.

The Company issued an aggregate of 162,644,300 Units and 2,000,000 Warrants (as defined below), including 14,544,300 Units and 2,000,000 Warrants pursuant to the partial exercise of the Over-Allotment Option, at a price of C$0.77 per Unit (the “Offering Price”) and C$0.08 per Warrant, for aggregate gross proceeds of approximately C$125.4 million. 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 C$1.00 per Warrant Share until May 29, 2023.

The proceeds of the Offering will be sufficient to satisfy the condition to the effectiveness of the previously announced amendments to the Company’s amended and restated credit facility with its senior project lender, KfW-IPEX Bank (the “KfW Facility”), for a significant deferral and extension of its debt facilities. See the Company’s October 12, 2021 news release for additional details on the amendments to the KfW Facility.

In connection with the closing of the Offering, the Company’s largest shareholder, Pala Investments Limited (“Pala”), has maintained its current shareholding percentage in the Company by completing the purchase, on a private placement basis, of 98,104,584 Units, at the Offering Price in the aggregate amount of approximately C$75.5 million (the “Concurrent Private Placement”). The consideration for the Concurrent Private Placement was the full repayment of the promissory note entered into between the Company and Pala on June 10, 2021, as amended and restated, and the partial repayment of debt owing by the Company to Pala under the credit facility entered into between the Company and Pala on February 3, 2021 (the “Credit Facility”).

As previously announced, in connection with the Offering and the Concurrent Private Placement, Pala and the Company have agreed to amend and restate the Credit Facility on the terms set forth in the binding term sheet entered into between the Company and Pala on November 10, 2021 (the “Amended Credit Facility”). The Amended Credit Facility will have a principal amount of approximately US$32 million and an extended maturity date to January 31, 2026. The Amended Credit Facility will contain an accordion feature allowing the Company to draw up to an additional US$15 million under the Amended Credit Facility, subject to the agreement of Pala and the prior acceptance by the Toronto Stock Exchange (the “TSX”). The Company expects to enter into the Amended Credit Facility on or about November 30, 2021. In connection with entering into the Amended Credit Facility, the Company will issue 15,000,000 Common Share purchase warrants (the “Credit Facility Warrants”) to Pala. Each Credit Facility Warrant will entitle Pala to purchase, on or before January 31, 2026, one Common Share at an exercise price equal to a 25% premium to the 5-day volume weighted average price of the Common Shares as of the trading day immediately prior to the entering into of the Amended Credit Facility. Pursuant to the requirements of the TSX, the approval of disinterested shareholders of the Company will be required to be obtained before the Credit Facility Warrants become exercisable.

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 (the “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

Randy Buffington, President and CEO

For further information contact:
Rich Matthews, Investor Relations
Integrous Communications
rmatthews@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 Amended Credit Facility and the timing in respect thereof, and the issuance and approval of the Credit Facility Warrants.

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: the ability of the Company to complete the ramp-up of the Underground Mine within the expected cost estimates and timeframe; requirements for additional capital and no assurance can be given regarding the availability thereof; the impact of the COVID-19 pandemic 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; failure to enter into the Amended Credit Facility; ground conditions; cost overruns relating to development, construction and ramp-up of the 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; 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 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, 2020 and in the section entitled “Risk Factors” in the Company’s Annual Information Form dated March 18, 2021. Should one or more of these risks or 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 or statements are stated as of the date hereof. Nevada Copper disclaims any intent or obligation to update forward-looking statements or information except as required by law. Readers are referred to the additional information regarding Nevada Copper’s business contained in Nevada Copper’s reports filed with the securities regulatory authorities in Canada. 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 statements, there may be other factors that could cause actions, events or results not to be as anticipated, estimated or intended. For more information on Nevada Copper and the risks and challenges of its business, investors should review Nevada Copper’s filings that are available at www.sedar.com.

Nevada Copper 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.

Categories
Base Metals Energy Exclusive Interviews Junior Mining Nevada Copper Noram Lithium

Andrew Hecht – Green Energy Are Catalysts For Lithium And Copper

  • Battery metal demand is rising, and the trend will continue
  • New properties are in demand- Producers provide leverage to the metal prices, and exploration companies turbocharge the gearing- Location is critical
  • Lithium Americas (LAC) looks to pick up a property
  • Nevada Copper (NEVDF)- The trend is your friend, and increasing demand for EVs supports a continuation of the rally

Noram Lithium (NRVTF)- An undervalued battery metal play in Nevada, a desirable jurisdiction

In real estate, a property’s value always reflects its location. Any real estate professional understands that the three leading value factors are location-location-location. 

Commodity producers face many regional issues. Raw materials can occur in local regions where political or economic forces make extraction challenging. The cost of production reflects local tax, royalty, logistical, and other factors.

Over the past year, the ascent of metals prices has caused many of the world’s leading producers to scramble to find new mining projects to meet the growing demand. One of the world’s leading diversified commodity producers, BHP is currently in talks with Ivanhoe Mines to acquire part of the Western Foreland exploration area in the Democratic Republic of the Congo (DRC). While DRC is the largest copper producer in Africa with the most substantial reserves, the country has a long history of corruption that has impeded its growth. The DRC is not an ideal location for mining companies, but the growing need for new output has put BHP in a position to consider the project. It takes up to ten years to bring a new copper mine into production, and producers are scouring the earth for projects that will meet the increasing demand.

Goldman Sachs called copper “the new oil” because of its role in decarbonization. Three-month LME copper was trading at the $9,518 per ton level on November 5, with the December COMEX copper futures at the $4.3430 per pound level. Goldman projects that copper prices could rise to the $15,000 per ton level by 2025, putting COMEX copper futures north of the $6.80 per pound level.  

Meanwhile, lithium is another commodity that is experiencing growing demand. The success of addressing climate change through decarbonization relies on ample supplies of battery metals that can replace fossil fuels.

While BHP is looking to the DRC for new copper deposits, other mining and exploration companies are developing battery metal deposits. Friendlier and less challenging jurisdictions are likely to attract significant premiums over the coming months and years.

In the US, Nevada, the silver state, has a long history as one of the most favorable mining jurisdictions on the earth. When it comes to location, it does not get much better than Nevada.

Battery metal demand is rising, and the trend will continue

Climate change is not a US issue; it is a worldwide trend. Addressing climate change involves replacing the hydrocarbons that currently power the world with alternative, renewable energy sources. While batteries power only around one percent of the cars on roads today, the demand for EVs is growing by leaps and bounds. Hertz recently announced they are purchasing 100,000 Tesla model-3 EVs in a $4.2 billion deal. EVs will make up 20% of the Hertz fleet by the end of 2022. Hertz will also install thousands of charging stations in its locations in the US and Europe.

EV’s require twice the copper as internal combustion engines. The batteries require other metals and minerals including, lithium, nickel, cobalt, zinc, aluminum, manganese, graphite, and potassium. Tesla’s batteries currently use lithium-nickel-cobalt-aluminum chemistry. However, the company is working on a set of cobalt-free or reduced batteries drawing on lithium-iron-phosphate technology and chemistries that rely more heavily on nickel. The three-month nickel price on the London Metals Exchange closed 2020 at the $16,600 per ton level. As of November 4, the price was over $19,400 after reaching over $20,500 during the year. Copper futures on COMEX may have corrected from the May 2021 all-time high at nearly $4.90 per pound, but they remain appreciably higher than at the end of 2020.

Source: CQG

The monthly chart shows that copper closed 2020 at the $3.52 level. At the $4.3430 per pound level in early November 2021, copper futures were over 23% higher. The price action in the lithium carbonate market has been even more bullish.

Source: Trading Economics

The chart shows the rise from below $33,000 per ton in 2020 to the current price at the $194,500 level, an increase of nearly six times. Lithium’s ascent is more like a cryptocurrency than a commodity as the demand for the metal for EV production grows.

New properties are in demand- Producers provide leverage to the metal prices, and exploration companies turbocharge the gearing- Location is critical

Mining companies make substantial capital investments to extract raw materials from the earth’s crust. The leading mining companies profit handsomely when market prices exceed production costs, creating leverage. Mining companies often outperform the commodities they produce on the upside but underperform when prices decline.

Meanwhile, exploration companies provide even more leverage. Since rewards are always a function of the risks, companies that search for commodities tend to experience incredible gains when they find them and begin production or sell the properties to the more established mining companies that can take projects to the next production and processing levels.

The mining industry reflects economies of scale. The leading companies like BHP, Rio Tinto, Anglo American, Glencore, and others have made significant capital investments and spread production risks over a diversified portfolio of mining properties. They tend to allow exploration companies to make the finds and then take the mining properties to the next steps.

When it comes to investing, exploration companies can offer attractive returns that often outpace the underlying commodity and the established miners on a percentage basis. If the BHP’s offer leverage, exploration companies turbocharge that gearing.  

Lithium Americas (LAC) looks to pick up a property

Lithium Americas Corporation (LAC) operates as a resource company in the United States. The company explores for lithium deposits. LAC owns interests in the Cauchari-Olaroz Project in the Jujuy province of Argentina and the Thacker Pass project in north-western Humboldt County, Nevada. Thacker Pass recently increased its Phase 1 capacity to target 40,000 tpa lithium carbonate.

LAC announced it submitted an unconditional offer to Millennial Lithium Corporation to acquire all of the outstanding shares for approximately $400 million.

Source: Barchart

The chart shows LAC’s ascent from a low of $1.92 per share in March 2020 to its most recent high of $33.42 on November 4. At the $32.67 per share level, LAC’s market cap was over $3.919 billion. An average of over five million shares changes hands each day. Lithium has been a hot commodity that has moved nearly six times since 2020. LAC shares have moved over seventeen times higher over the period as the successful mining company turbocharged the commodity’s percentage gain.

Nevada Copper (NEVDF)- The trend is your friend, and increasing demand for EVs supports a continuation of the rally

Nevada Copper is an exploration company in the silver state of Nevada. The company owns a 100% interest in the Pumpkin Hollow property that contains copper, gold, and silver reserves. The most recent operations update highlighted accelerated stope turnover rates, management team changes that strengthened the company, productivity improvements, and processing of ore averaging approximately 1.5% copper delivered to the mill. Since the May high, copper’s price has dropped at nearly $4.90 per pound on the nearby COMEX futures contract. NEVDF is an exploration company, so its share performance tends to outperform the commodity on the upside and underperform on the downside. Copper rose from $3.52 per pound at the end of 2020 to a high of $4.8985 in May or 39.2%. On November 5, the price was at the $4.3430 level, 11.3% below the May peak. NEVDF shares closed 2020 at the $1.14 level.

Source: Barchart

The chart highlights that NEVDF shares reached a high of $2.71 when copper peaked and traded at 67.00 cents per share on November 5. NEVDF shares rallied by 137.7% and from the end of 2020 to the May 2021 high and were 75.3% lower than the peak as of November 5. Like many exploration companies, NEVDF turbocharged the price action in copper, outperforming the metal on the upside and underperforming on the downside.

As the demand for copper will rise over the coming years, and Goldman Sachs expects the price to increase dramatically, now could be the perfect time to consider this exploration company.

Noram Lithium (NRVTF)- Another battery metal play in Nevada, a desirable jurisdiction

Norman Lithium (NRVTF) is an exploration company that develops mineral properties in the United States.
The company owns interests in the Zeus Lithium Project in Clayton Valley, Nevada. Noram’s property is next door to Albemarle Corporation’s (ALB)  Silver Peak Lithium Mine in Nevada. 

Noram’s latest highlights include:

  • A 70% increase in measured and indicated resources
  • A 369% increase in inferred resources
  • Deposits near the surface, reducing production costs
  • The potential to increase the deposit size via deeper drilling
  • An environmentally friendly footprint
  • A Preliminary Economic Assessment (PEA) in the coming weeks – Advancing the project closer to its’ production target

At the 67.15 cents per share level, NRVTF has a market cap at the $50.701 million level. An average of 56,780 shares changes hands each day.

Source: Barchart

The chart shows NRVTF shares closed at the 40.26 cents level on December 31, 2020. At 66.87 on November 5, they were 66.1% higher. NRVTF shares reached a high of 98.78 cents on January 14, 2021, which is the stock’s current technical target. The shares have traded in a bullish trend since mid-April 2021.

With the spotlight on lithium, Norman could be an excellent exploration company to consider. Success in the Zeus project could attract interest from companies like Lithium Americas Corporation (LAC) that is currently buying Millennial Lithium Corporation’s shares for $400 million, nearly eight times higher than NRVTF’s current market cap.

Exploration companies are risky, but the potential for substantial rewards always involves an elevated risk level. Meanwhile, Nevada Copper and Noram Lithium have location on their sides as Nevada is a highly desirable mining jurisdiction in a world hungry for copper and lithium supplies.

Categories
Base Metals Energy Junior Mining Nevada Copper Noram Lithium

Location-Location-Location Applies To The Quest For Battery Metals | Nevada Copper and Noram Lithium

  • Battery metal demand is rising, and the trend will continue
  • New properties are in demand- Producers provide leverage to the metal prices, and exploration companies turbocharge the gearing- Location is critical
  • Lithium Americas (LAC) looks to pick up a property
  • Nevada Copper (NEVDF)- The trend is your friend, and increasing demand for EVs supports a continuation of the rally

Noram Lithium (NRVTF)- An undervalued battery metal play in Nevada, a desirable jurisdiction

In real estate, a property’s value always reflects its location. Any real estate professional understands that the three leading value factors are location-location-location. 

Commodity producers face many regional issues. Raw materials can occur in local regions where political or economic forces make extraction challenging. The cost of production reflects local tax, royalty, logistical, and other factors.

Over the past year, the ascent of metals prices has caused many of the world’s leading producers to scramble to find new mining projects to meet the growing demand. One of the world’s leading diversified commodity producers, BHP is currently in talks with Ivanhoe Mines to acquire part of the Western Foreland exploration area in the Democratic Republic of the Congo (DRC). While DRC is the largest copper producer in Africa with the most substantial reserves, the country has a long history of corruption that has impeded its growth. The DRC is not an ideal location for mining companies, but the growing need for new output has put BHP in a position to consider the project. It takes up to ten years to bring a new copper mine into production, and producers are scouring the earth for projects that will meet the increasing demand.

Goldman Sachs called copper “the new oil” because of its role in decarbonization. Three-month LME copper was trading at the $9,518 per ton level on November 5, with the December COMEX copper futures at the $4.3430 per pound level. Goldman projects that copper prices could rise to the $15,000 per ton level by 2025, putting COMEX copper futures north of the $6.80 per pound level.  

Meanwhile, lithium is another commodity that is experiencing growing demand. The success of addressing climate change through decarbonization relies on ample supplies of battery metals that can replace fossil fuels.

While BHP is looking to the DRC for new copper deposits, other mining and exploration companies are developing battery metal deposits. Friendlier and less challenging jurisdictions are likely to attract significant premiums over the coming months and years.

In the US, Nevada, the silver state, has a long history as one of the most favorable mining jurisdictions on the earth. When it comes to location, it does not get much better than Nevada.

Battery metal demand is rising, and the trend will continue

Climate change is not a US issue; it is a worldwide trend. Addressing climate change involves replacing the hydrocarbons that currently power the world with alternative, renewable energy sources. While batteries power only around one percent of the cars on roads today, the demand for EVs is growing by leaps and bounds. Hertz recently announced they are purchasing 100,000 Tesla model-3 EVs in a $4.2 billion deal. EVs will make up 20% of the Hertz fleet by the end of 2022. Hertz will also install thousands of charging stations in its locations in the US and Europe.

EV’s require twice the copper as internal combustion engines. The batteries require other metals and minerals including, lithium, nickel, cobalt, zinc, aluminum, manganese, graphite, and potassium. Tesla’s batteries currently use lithium-nickel-cobalt-aluminum chemistry. However, the company is working on a set of cobalt-free or reduced batteries drawing on lithium-iron-phosphate technology and chemistries that rely more heavily on nickel. The three-month nickel price on the London Metals Exchange closed 2020 at the $16,600 per ton level. As of November 4, the price was over $19,400 after reaching over $20,500 during the year. Copper futures on COMEX may have corrected from the May 2021 all-time high at nearly $4.90 per pound, but they remain appreciably higher than at the end of 2020.

Source: CQG

The monthly chart shows that copper closed 2020 at the $3.52 level. At the $4.3430 per pound level in early November 2021, copper futures were over 23% higher. The price action in the lithium carbonate market has been even more bullish.

Source: Trading Economics

The chart shows the rise from below $33,000 per ton in 2020 to the current price at the $194,500 level, an increase of nearly six times. Lithium’s ascent is more like a cryptocurrency than a commodity as the demand for the metal for EV production grows.

New properties are in demand- Producers provide leverage to the metal prices, and exploration companies turbocharge the gearing- Location is critical

Mining companies make substantial capital investments to extract raw materials from the earth’s crust. The leading mining companies profit handsomely when market prices exceed production costs, creating leverage. Mining companies often outperform the commodities they produce on the upside but underperform when prices decline.

Meanwhile, exploration companies provide even more leverage. Since rewards are always a function of the risks, companies that search for commodities tend to experience incredible gains when they find them and begin production or sell the properties to the more established mining companies that can take projects to the next production and processing levels.

The mining industry reflects economies of scale. The leading companies like BHP, Rio Tinto, Anglo American, Glencore, and others have made significant capital investments and spread production risks over a diversified portfolio of mining properties. They tend to allow exploration companies to make the finds and then take the mining properties to the next steps.

When it comes to investing, exploration companies can offer attractive returns that often outpace the underlying commodity and the established miners on a percentage basis. If the BHP’s offer leverage, exploration companies turbocharge that gearing.  

Lithium Americas (LAC) looks to pick up a property

Lithium Americas Corporation (LAC) operates as a resource company in the United States. The company explores for lithium deposits. LAC owns interests in the Cauchari-Olaroz Project in the Jujuy province of Argentina and the Thacker Pass project in north-western Humboldt County, Nevada. Thacker Pass recently increased its Phase 1 capacity to target 40,000 tpa lithium carbonate.

LAC announced it submitted an unconditional offer to Millennial Lithium Corporation to acquire all of the outstanding shares for approximately $400 million.

Source: Barchart

The chart shows LAC’s ascent from a low of $1.92 per share in March 2020 to its most recent high of $33.42 on November 4. At the $32.67 per share level, LAC’s market cap was over $3.919 billion. An average of over five million shares changes hands each day. Lithium has been a hot commodity that has moved nearly six times since 2020. LAC shares have moved over seventeen times higher over the period as the successful mining company turbocharged the commodity’s percentage gain.

Nevada Copper (NEVDF)- The trend is your friend, and increasing demand for EVs supports a continuation of the rally

Nevada Copper is an exploration company in the silver state of Nevada. The company owns a 100% interest in the Pumpkin Hollow property that contains copper, gold, and silver reserves. The most recent operations update highlighted accelerated stope turnover rates, management team changes that strengthened the company, productivity improvements, and processing of ore averaging approximately 1.5% copper delivered to the mill. Since the May high, copper’s price has dropped at nearly $4.90 per pound on the nearby COMEX futures contract. NEVDF is an exploration company, so its share performance tends to outperform the commodity on the upside and underperform on the downside. Copper rose from $3.52 per pound at the end of 2020 to a high of $4.8985 in May or 39.2%. On November 5, the price was at the $4.3430 level, 11.3% below the May peak. NEVDF shares closed 2020 at the $1.14 level.

Source: Barchart

The chart highlights that NEVDF shares reached a high of $2.71 when copper peaked and traded at 67.00 cents per share on November 5. NEVDF shares rallied by 137.7% and from the end of 2020 to the May 2021 high and were 75.3% lower than the peak as of November 5. Like many exploration companies, NEVDF turbocharged the price action in copper, outperforming the metal on the upside and underperforming on the downside.

As the demand for copper will rise over the coming years, and Goldman Sachs expects the price to increase dramatically, now could be the perfect time to consider this exploration company.

Noram Lithium (NRVTF)- Another battery metal play in Nevada, a desirable jurisdiction

Norman Lithium (NRVTF) is an exploration company that develops mineral properties in the United States.
The company owns interests in the Zeus Lithium Project in Clayton Valley, Nevada. Noram’s property is next door to Albemarle Corporation’s (ALB)  Silver Peak Lithium Mine in Nevada. 

Noram’s latest highlights include:

  • A 70% increase in measured and indicated resources
  • A 369% increase in inferred resources
  • Deposits near the surface, reducing production costs
  • The potential to increase the deposit size via deeper drilling
  • An environmentally friendly footprint
  • A Preliminary Economic Assessment (PEA) in the coming weeks – Advancing the project closer to its’ production target

At the 67.15 cents per share level, NRVTF has a market cap at the $50.701 million level. An average of 56,780 shares changes hands each day.

Source: Barchart

The chart shows NRVTF shares closed at the 40.26 cents level on December 31, 2020. At 66.87 on November 5, they were 66.1% higher. NRVTF shares reached a high of 98.78 cents on January 14, 2021, which is the stock’s current technical target. The shares have traded in a bullish trend since mid-April 2021.

With the spotlight on lithium, Norman could be an excellent exploration company to consider. Success in the Zeus project could attract interest from companies like Lithium Americas Corporation (LAC) that is currently buying Millennial Lithium Corporation’s shares for $400 million, nearly eight times higher than NRVTF’s current market cap.

Exploration companies are risky, but the potential for substantial rewards always involves an elevated risk level. Meanwhile, Nevada Copper and Noram Lithium have location on their sides as Nevada is a highly desirable mining jurisdiction in a world hungry for copper and lithium supplies.

Categories
Base Metals Breaking Junior Mining Nevada Copper

Nevada Copper Announces Overnight Marketed Public Offering of Units

YERINGTON, Nev., Nov. 10, 2021 (GLOBE NEWSWIRE) — Nevada Copper Corp. (TSX: NCU) (OTC: NEVDF) (FSE: ZYTA) (“Nevada Copper” or the “Company”) is pleased to announce that it has filed a preliminary short form prospectus with the securities commissions in all provinces of Canada, except Quebec, in connection with a marketed public offering (the “Offering”) of units (the “Units”) of the Company seeking to raise aggregate gross proceeds of approximately C$75,000,000. The Company’s largest shareholder, Pala Investments Limited (“Pala”), has committed to purchase, on a private placement basis, an aggregate number of Units to maintain its current shareholding percentage in the Company (the “Private Placement”) after giving effect to both the Offering and the Private Placement (the “Purchased Units”) at the price per Purchased Unit determined in connection with the Offering.

Each Unit will consist 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” and collectively the “Warrants”). Each Warrant will be exercisable for one Common Share at any time for a period of 18 months following closing of the Offering. Final pricing of the Units, the Warrant exercise price and the determination of the number of Units to be sold pursuant to the Offering will be determined following marketing. The Offering will be conducted on an overnight marketed “best efforts” basis by a syndicate of underwriters to be formed and led by Scotiabank, as lead underwriter and sole-bookrunner (collectively, the “Underwriters”).

The Company intends to grant the Underwriters an option, exercisable in whole or in part, at the sole discretion of the Underwriters, at any time for a period of 30 days from and including the closing of the Offering, to purchase from the Company up to an additional 15% of the Units sold under the Offering, on the same terms and conditions of the Offering to cover over-allotments, if any, and for market stabilization purposes (the “Over-Allotment Option”). The Over-Allotment Option may be exercised by the Underwriters to purchase additional Units, Common Shares, Warrants or any combination thereof.

As announced on October 12, 2021, the Company entered into amendments to its amended and restated credit facility (the “KfW Facility”) with its senior project lender, KfW-IPEX Bank, for a significant deferral and extension of its debt facilities, providing substantially greater balance sheet flexibility and support for the completion of the ramp-up of its underground mining operations and subsequent advancement of its open pit project and broader property exploration targets. The Company expects the effectiveness of the deferral and extensions agreed under the KFW Facility to occur upon the closing of the Offering and the Private Placement.

Additionally, in connection with the Offering, the Company and Pala have agreed to amend the existing non-binding term sheet as previously announced on October 12, 2021 to provide for a binding commitment (the “Binding Term Sheet”) in respect of certain amendments to the credit facility entered into between Company and Pala on February 3, 2021 (as amended, the “Amended Credit Facility”). The Amended Credit Facility will consolidate all outstanding loans owing to Pala and the maturity date will be extended by two years from 2024 to 2026. Net proceeds raised in the Offering will replace the new tranche of up to US$41 million that was contemplated by the non-binding term sheet, which will be a significant improvement to the Company’s balance sheet. See the Company’s October 12, 2021 news release for additional details on the terms of the Amended Credit Facility.

The Company intends to use the net proceeds of the Offering for: (i) the development and ramp-up of the underground mine at the Company’s Pumpkin Hollow project (the “Underground Mine”); (ii) the repayment of bridge loans advanced under the promissory note issued by the Company to Pala on October 1, 2021, as amended and restated on November 1, 2021; and (iii) general corporate purposes. The net proceeds from the Private Placement will be utilized to retire and prepay an equivalent portion of the existing loans outstanding under the promissory note issued by the Company to Pala on June 10, 2021, as amended and restated (the “June Promissory Note”), such that Pala will continue to maintain its current shareholding percentage in the Company after giving effect to the Offering and the Private Placement. The balance of the June Promissory Note will be consolidated and extended under the Amended Credit Facility in accordance with the Binding Term Sheet.

The Offering is expected to close on or about November 29, 2021, or such other date as the Company and the Underwriters may agree. Closing of the Offering is subject to customary closing conditions, including, but not limited to, the execution of an underwriting agreement and the receipt of all necessary regulatory approvals, including the approval of the securities regulatory authorities and the Toronto Stock Exchange. The Private Placement is conditional on the closing of the Offering.

The preliminary short form prospectus is available on SEDAR at www.sedar.com. The Company has also today filed on SEDAR its condensed interim financial statements and the related management’s discussion and analysis for the quarter ended September 30, 2021.

This news release does not constitute an offer to sell or a solicitation of an offer to buy 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

Randy Buffington, President and CEO

For further information contact:
Rich Matthews, Investor Relations
Integrous Communications
rmatthews@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 completion of the Offering and the Private Placement and the timing in respect thereof, the entering into of the Amended Credit Facility and the use of proceeds of the Offering and the Private Placement.

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: the ability of the Company to complete the ramp-up of the Underground Mine within the expected cost estimates and timeframe; requirements for additional capital and no assurance can be given regarding the availability thereof; the impact of the COVID-19 pandemic 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; failure to obtain the effectiveness of extensions under and amendments to the KfW Facility; failure to enter into the Amended Credit Facility; ground conditions; cost overruns relating to development, construction and ramp-up of the 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; 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 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, 2020 and in the section entitled “Risk Factors” in the Company’s Annual Information Form dated March 18, 2021. Should one or more of these risks or 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 or statements are stated as of the date hereof. Nevada Copper disclaims any intent or obligation to update forward-looking statements or information except as required by law. Readers are referred to the additional information regarding Nevada Copper’s business contained in Nevada Copper’s reports filed with the securities regulatory authorities in Canada. 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 statements, there may be other factors that could cause actions, events or results not to be as anticipated, estimated or intended. For more information on Nevada Copper and the risks and challenges of its business, investors should review Nevada Copper’s filings that are available at www.sedar.com.

Nevada Copper 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.

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Base Metals Energy Junior Mining Nevada Copper

Nevada Copper Provides Update on Accelerating Stope Production and Ramp-Up Progress

YERINGTON, Nev., Nov. 08, 2021 (GLOBE NEWSWIRE) — Yerington, NV – November 8, 2021 – Nevada Copper Corp. (TSX: NCU) (OTC: NEVDF) (FSE: ZYTA) (“Nevada Copper” or the “Company”) today provided a further update on positive October operational performance at the Company’s underground mine at its Pumpkin Hollow Project (the “Underground Mine”).

October Operational Highlights

  • Consistent Progress on Stoping
    • Stoping rates continue to accelerate, with four stopes mined in H2 2021, including the most recent stope with an estimated grade of over 2% Cu.
    • Mining of the higher-grade Sugar Cube zone is planned to begin next month. This will be the first stope mined in the East North area which is expected to have significantly larger stope sizes.
  • Dike Heading Progressing
    • The lateral development beyond the completed first dike crossing is progressing at targeted rates. The geotechnical information learned from this crossing has been implemented on the second dike heading, which is now advancing well. This and the first heading will provide access to additional stopes adding to the Company’s growing stope inventory in H1 2022.
  • Surface Ventilation Fans
    • The surface ventilation fans are scheduled to arrive in late Q4 of this year and are expected to be commissioned on time in line with the requirements of the mine plan as Underground Mine development progresses towards completion of the ramp up.
  • Hiring Nearing Completion
    • The Company is nearing completion of hiring key mining technical positions, with a new mine manager now onboarded and a technical services manager expected to be hired in November.
    • A Project Management Office has now been established on site in order to efficiently complete the remaining key infrastructure items, including the surface ventilation fans and an additional ore pass.

Randy Buffington, President and Chief Executive Officer, commented: “I am very pleased with the progress the team has made through the end of October and to date. The accelerated stope delivery we are starting to see should increase as we continue to benefit from the improving contractor performance levels which has been facilitated by key management hirings and the implementation of enhanced management systems at Pumpkin Hollow.”

Qualified Persons

The technical information and data in this news release was reviewed by Greg French, C.P.G., VP Head of Exploration of Nevada Copper, and Neil Schunke, P.Eng., a consultant to Nevada Copper, who are non-independent Qualified Persons within the meaning of NI 43-101.

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
Randy Buffington, President and CEO

For further information contact:
Rich Matthews, Investor Relations
Integrous Communications
rmatthews@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 mine development, production and ramp-up objectives and equipment installation.

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: the ability of the Company to complete the ramp-up of the Underground Mine within the expected cost estimates and timeframe; requirements for additional capital and no assurance can be given regarding the availability thereof; the impact of the COVID-19 pandemic 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; failure to obtain the effectiveness of extensions under and amendments to the Company’s amended and restated senior credit facility with KfW IPEX-Bank; ground conditions; cost overruns relating to development, construction and ramp-up of the 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; 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 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, 2020 and in the section entitled “Risk Factors” in the Company’s Annual Information Form dated March 18, 2021. Should one or more of these risks or 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 or statements are stated as of the date hereof. Nevada Copper disclaims any intent or obligation to update forward-looking statements or information except as required by law. Readers are referred to the additional information regarding Nevada Copper’s business contained in Nevada Copper’s reports filed with the securities regulatory authorities in Canada. 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 statements, there may be other factors that could cause actions, events or results not to be as anticipated, estimated or intended. For more information on Nevada Copper and the risks and challenges of its business, investors should review Nevada Copper’s filings that are available at www.sedar.com.

Nevada Copper 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.