Tag: nevada copper

Nevada Copper Provides Update on Restart Activities at Pumpkin Hollow and the Proposed Restart Financing Package

Post author By admin
Post date September 27, 2022

YERINGTON, Nev., Sept. 26, 2022 (GLOBE NEWSWIRE) — Nevada Copper (TSX: NCU) (OTC: NEVDF) (FSE: ZYTA) (“Nevada Copper” or the “Company”) is pleased to provide an update on planned restart activities at its Pumpkin Hollow underground copper mine (the “Underground Mine”) and developments with respect to the proposed financing package that was previously announced in the Company’s news release dated August 25, 2022 (the “Prior Announcement”). The financing is expected to provide up to US$93 million of liquidity to the Company in order to support the restart and ramp-up of the Underground Mine (the “Restart Financing Package”).

Randy Buffington, President & CEO, commented: “These past few weeks the team has been focused on ensuring that we are prepared for the restart of underground operations. We have made significant progress in developing the plans, recruiting the people and implementing the systems necessary to derisk the restart. We have attracted several key technical positions and built the initial underground team to be able to execute on the first critical projects, primarily the remaining two dike crossings required to access the EN zone. We believe that taking a careful, phased approach to restarting the mine removes some of the bottlenecks the operation has faced in the past and will facilitate a rapid ramp-up to nameplate capacity once the mill restarts in mid-2023. We are looking forward to completing the capital projects and bringing the underground mine up to full operations so that we can turn our attention to development of the large open pit project. I continue to appreciate the ongoing commitment and support of our team and key stakeholders as we work diligently to close this financing and get back to operations.”

Operations and Mine Planning Activities Update

As previously announced, the Company has advanced planning for the restart of operations at its Underground Mine. The Company engaged a third-party consulting firm, John Wood Group plc, to complete a mine plan focusing on accessing the larger, higher-grade stopes in the East North Zone (EN Zone). The mine plan has been completed with an optimized stoping sequence that brings value forward in the life of mine and derisks the restart by advancing development activities and building significant underground inventory ahead of restarting the mill in mid-2023. Included in the mine plan are updated operating costs, which are not expected to be materially different from previous estimates as they have not been significantly impacted by inflationary pressures.

The restart plan, as envisaged, will be executed in three phases following the closing of the Restart Financing Package:

Phase 1 – Completion of the remaining two dike crossings and certain capital projects, workforce development

Phase 2 – Underground stope and inventory development

Phase 3 – Stope mining and mill start-up

In September, the Company entered Phase 1 by reinitiating development activities with one mining crew focused on completing the second dike crossing. It is anticipated that the crossing will be completed and well advanced beyond the geological dike feature within the next 30 days, at which time the crew will move onto the third and final dike crossing. In addition, the Company is preparing to issue bid packages to interested development contractors to perform underground development activities and for completion of the remaining capital projects, including: (i) coarse ore bin 2; (ii) vent shaft stripping and surface fans installation; and (iii) Geho dewatering system.

In early 2023, the Company plans to begin rapid development with the use of a development contractor to advance into the higher-grade stopes of the EN Zone and build significant underground ore inventory. The Company will continue to recruit additional underground personnel to prepare for stope mining in the second quarter of 2023. With a significant stockpile of ore on surface and underground inventory expected to be built up, the mill is planned to start up in the third quarter of 2023.

Restart Financing Package Update

As disclosed in the Prior Announcement, the key components of the Restart Financing Package are as follows:

Equity Investments (US$40 million): Pala Investments Limited (“Pala”), the Company’s largest shareholder, and Mercuria Energy (“Mercuria”), a significant shareholder of the Company, are each expected to provide US$20 million in exchange for common shares of the Company (“Common Shares”). Pala has already advanced US$13.5 million of such funding to the Company.
Stream and Royalty Financing (US$30 million): Triple Flag Precious Metals Corp. (“Triple Flag”) is expected to increase its existing net smelter returns royalty on the Company’s open pit project from 0.7% to 2% for a purchase price of approximately US$26.2 million, subject to a full buyback of the increased royalty percentage. In addition, Triple Flag is expected to accelerate the approximately US$3.8 million remaining to be funded under the Company’s existing metals purchase and sale agreement with Triple Flag.
KfW Facility Extension (US$15 million committed): The Company’s senior credit facility (the “KfW Facility”) with KfW IPEX-Bank GmbH (“KfW”) is expected to be amended to provide for a new tranche of up to US$25 million, of which Pala, Triple Flag and Mercuria would commit the first US$15 million as a backstop.
Deferrals under Senior Project Facility and Working Capital Facility (expected to be at least US$8 million): KfW is expected to defer three interest payments under the KfW Facility. Concord Resources Limited is expected to defer interest and principal payments under the Company’s working capital facility.

Under the Restart Financing Package, Pala is expected to consolidate approximately US$73 million of the indebtedness currently owing to Pala by the Company into an amended or new debt instrument (the “Pala Debt Instrument”), which indebtedness would be convertible into Common Shares.

Please see the Prior Announcement for additional details regarding the Restart Financing Package.

Nevada Copper reminds shareholders that the terms of the Restart Financing Package are currently non-binding and closing is subject to, among other things, finalization of the specific terms thereof, negotiation and execution of definitive documentation and the satisfaction of various regulatory requirements. The Company and its key financing partners intend to enter into definitive documents in respect of and close the Restart Financing Package concurrently on or about October 5, 2022 (the “Closing Date”). The closing of the Restart Financing Package will be subject to the approval of the Toronto Stock Exchange (the “TSX”).

As disclosed in the Prior Announcement, there can be no assurance that binding agreements will be entered into or completed (or the required regulatory approvals obtained) on terms satisfactory to the Company and within the required timeframe, or at all. In addition, there can be no assurance that the Company will be able to raise the further funding to supplement the Restart Financing Package that will be required to complete the restart and ramp-up process. The Company expects the costs of the restart and ramp-up process to be in the range of US$70 million-US$75 million. In addition, the Company needs to satisfy and/or defer various outstanding vendor payables. Together these costs and payables are expected to exceed the amount of the Restart Financing Package. As a result, the Company continues to evaluate other additional financing options, including a public offering.

The Company intends to use the available proceeds from the Restart Financing Package of approximately US$71.5 million (representing the US$93 million of liquidity less US$13.5 million already advanced by Pala and less US$8 million in deferrals under the KfW Facility and the Company’s working capital facility) to fund ramp-up costs (approximately US$15.7 million to fund capital expenditures and approximately US$29.1 million to fund operating costs), vendor payments (approximately US$23.5 million) and for general corporate purposes, such as overhead (approximately US$3.2 million).

If the Restart Financing Package is not completed, absent other financing, the Company will not be able to continue carrying on business in the ordinary course and may need to pursue proceedings for creditor protection. The Company’s creditors may also seek to commence enforcement action, including realizing on their security over the Company’s assets.

Potential Maximum Dilution in Respect of the Restart Financing Package

Pala currently owns 167,759,110 Common Shares, representing approximately 37% of the outstanding Common Shares on a non-diluted basis. Mercuria currently owns 48,700,000 Common Shares, representing approximately 11% of the outstanding Common Shares on a non-diluted basis.

Pala is expected to fund its equity investment of US$20 million by the cancellation of approximately US$13.5 million in short-term debt advanced to the Company by Pala as interim financing and by the payment of approximately US$6.5 million on the Closing Date. The Pala Equity Investment will be at a subscription price equal to a 15% discount to the five-day volume weighted average price (the “VWAP”) of the Common Shares on the TSX as of the trading day prior to the Closing Date (the “Equity Subscription Price”). By way of illustration, if the closing of the Pala Equity Investment occurred on September 23, 2022, 120,088,496 Common Shares would be issued to Pala using a 15% discount to the five-day VWAP of C$0.266 and then converting such VWAP into U.S. dollars using the Bank of Canada exchange rate on September 23, 2022 of C$1.00=US$0.7369 (the “Illustrative Equity Subscription Price”). In addition, approximately US$1.665 million of guarantee and other fees will be satisfied by the issuance of Common Shares to Pala at the Equity Subscription Price. Based on the Illustrative Equity Subscription Price, this will result in an additional 9,999,655 Common Shares being issued to Pala. The transactions described in this paragraph together with the Pala Debt Instrument are referred to as the “Pala Equity Investment” herein.

Mercuria is expected to fund its equity investment of US$20 million in two tranches. The first tranche of US$10 million will be paid on the Closing Date. The second tranche of US$10 million will be deposited into escrow on the Closing Date and will be released upon the satisfaction or waiver of certain conditions. These conditions include the completion of certain steps in the ramp-up process that the Company expects to achieve before the end of 2022. The first tranche of the Mercuria Equity Investment will be at a subscription price equal to the Equity Subscription Price. The second tranche of the Mercuria Equity Investment will be at a subscription price equal to a 15% discount to the five-day VWAP of the Common Shares on the TSX as of the trading day prior to the applicable date of closing. By way of illustration, if the closing of both tranches of the Mercuria Equity Investment occurred today, 120,088,496 Common Shares would be issued to Mercuria using the Illustrative Equity Subscription Price.

In connection with the Mercuria Equity Investment, Mercuria is expected to receive Common Share purchase warrants of the Company (the “Warrants”). Each Warrant will entitle Mercuria to, subject to satisfying certain vesting conditions, acquire one Common Share at an exercise price equal to a 20% premium to the Equity Subscription Price. The Warrants will vest, from time to time, in conjunction with the conversion of the Pala Debt Instrument, thereby providing Mercuria with an ability to maintain its pro rata shareholding interest. The vesting of 50% of the Warrants will also be subject to the vesting condition that the second tranche of the Mercuria Equity Investment has closed. The Warrants will expire upon maturity of the Pala Debt Instrument. By way of illustration, if all Warrants vested and were exercised today, 119,205,651 Common Shares would be issued to Mercuria assuming the illustrated conversion of the Pala Debt Instrument described below. The transactions described in the foregoing two paragraphs are referred to as the “Mercuria Equity Investment” herein (the Mercuria Equity Investment together with the Pala Equity Investment are referred to herein as the “Equity Investments”).

Pala is expected to consolidate approximately US$73 million of the indebtedness currently owing to Pala by the Company into the Pala Debt Instrument. The loans outstanding to be consolidated into the Pala Debt Instrument would include (i) the total of approximately US$53 million outstanding under the existing credit agreement entered into by Pala and the Company in November 2021; and (ii) US$20 million that was advanced to the Company under a promissory note in June and July 2022. In connection with the entering of the Pala Debt Instrument, a 4% fee on the US$20 million amount referred to above will be payable to Pala and capitalized as additional principal under the Pala Debt Instrument. Amounts owing under the Pala Debt Instrument would be convertible into Common Shares, at Pala’s option, at a conversion price equal to a 20% premium to the Equity Subscription Price. By way of illustration, if all amounts owing under the Pala Debt Instrument were converted today, 374,402,808 Common Shares would be issued to Pala using a 20% premium to the Illustrative Equity Subscription Price.

Based on the above illustrations, the number of Common Shares that will be issued as a result of the Equity Investments is set out below, assuming the conversion in full of the Pala Debt Instrument and the exercise in full of the Warrants:

	Total Number of Common Shares currently held	Total Number of Common Shares that will be held after the Equity Investments excluding conversion of the Pala Debt Instrument and exercise of the Warrants	Total Number of Common Shares that will be held after the Equity Investments including conversion of the Pala Debt Instrument and exercise of the Warrants	% of Common Shares currently owned relative to Common Shares currently outstanding	% of Common Shares owned relative to Common Shares outstanding after the Equity Investments excluding conversion of the Pala Debt Instrument and exercise of the Warrants	% of Common Shares owned relative to Common Shares outstanding after the Equity Investments including conversion of the Pala Debt Instrument and exercise of the Warrants
Pala	167,759,110	297,847,261	672,250,069	37.41%	42.63%	56.39%
Mercuria	48,700,000	168,788,496	287,994,147	10.86%	24.16%	24.16%

The total number of Common Shares to be issued pursuant to the Equity Investments (excluding conversion of the Pala Debt Instrument and exercise of the Warrants) is 250,176,647, which represents approximately 56% relative to the number of Common Shares currently issued and outstanding. The total number of Common Shares to be issued pursuant to the Equity Investments (including conversion of the Pala Debt Instrument and exercise of the Warrants) is 743,785,105, which represents approximately 166% relative to the number of Common Shares currently issued and outstanding.

TSX Financial Hardship Exemption

Nevada Copper has applied to the TSX, pursuant to the provisions of Section 604(e) of the TSX Company Manual, for a “financial hardship” exemption from the requirements to obtain shareholder approval of components of the Restart Financing Package on the basis that, absent the Restart Financing Package the Company is in serious financial difficulty due to the lack of available cash and funding resources. Moreover, the Company is currently in default under its various credit facilities and the Company’s metals purchase and sale agreement with Triple Flag. The Restart Financing Package, including the Equity Investments, are designed to improve the Company’s financial situation. The entry into of each of the definitive agreements required in respect of the Restart Financing Package will occur concurrently. The application was approved by the Special Committee (as defined below) who has determined that the transactions discussed herein are reasonable for Nevada Copper in the circumstances. Under the policies of the TSX, on the basis that the Restart Financing Package was determined to be subject to the provisions of Section 607 of the TSX Company Manual for private placements, components of the Restart Financing Package would have required shareholder approval by the Company due to: (a) the number of Common Shares (including the Common Shares issuable upon the conversion of the Pala Debt Instrument and upon exercise of the Warrants) issuable in connection with the Restart Financing Package is in excess of 25% of the number of Common Shares outstanding; (b) the number of Common Shares to be issued to insiders (assuming conversion of the Pala Debt Instrument and exercise Warrants) is greater than 10% of the number of Common Shares outstanding; and (c) the consideration (being the Equity Investments) to be received by insiders is greater than 10% of the Company’s market capitalization. The Restart Financing Package will not materially affect control of the Company given Pala’s existing level of ownership in the Company.

The board of directors of the Company (the “Board”) has formed a special committee (the “Special Committee”) consisting of members of the Board who are independent of Pala, Mercuria and management of the Company, to consider the proposed terms of the Restart Financing Package, including the terms of the Equity Investments. The Special Committee has meet continuously throughout the negotiation of the proposed terms of the Restart Financing Package.

Nevada Copper expects that as a consequence of its financial hardship application, the TSX will conduct a remedial delisting review of the Company. Although Nevada Copper believes that it will be in compliance with all continued listing requirements of the TSX upon the closing of the Restart Financing Package, no assurance can be provided as to the outcome of such review or continued qualification for listing on the TSX. There can be no assurance that the TSX will accept the application for the use of the financial hardship exemption from the requirement to obtain shareholder approval described above.

The Equity Investments will be related party transactions of the Company for purposes of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”) and are subject to the formal valuation and minority approval requirements thereof, unless an exemption is available. It is the intention of the Company to rely on the financial hardship exemption provided for in Sections 5.5(g) and 5.7(e) of MI 61-101.

Qualified Person

The technical information and data in this news release has been reviewed by Steven Newman, Registered Member – SME, Vice President, Technical Services for Nevada Copper, who is a non-independent Qualified Person 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.

Randy Buffington
President & CEO

For additional information, please see the Company’s website at www.nevadacopper.com, or contact:

Tracey Thom | Vice President, IR and Community Relations
tthom@nevadacopper.com
+1 775 391 9029

Cautionary Language on Forward Looking Statements
This news release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable Canadian securities laws. All statements in this news release, other than statements of historical facts, are forward-looking statements. Such forward-looking information and forward-looking statements specifically include, but are not limited to, statements that relate to the completion of the funding package described above, including the terms and timing thereof, the plans and requirement for supplementary financing and the expected amounts thereof, regulatory requirements, the Company’s “financial hardship” exemption application, the use of proceeds from the Restart Financing Package, creditor protection proceedings, mine planning, the execution of the mine restart plan and expected development schedule, and the expected costs of the restart and ramp-up process. There can be no assurance that the Restart Financing Package will close or that the cost estimates or allocation thereof will be accurate.

Forward-looking statements and information include statements regarding the expectations and beliefs of management. Often, but not always, forward-looking statements and forward-looking information can be identified by the use of words such as “plans”, “expects”, “potential”, “is expected”, “anticipated”, “is targeted”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements or information should not be read as guarantees of future performance and results. They are subject to known and unknown risks, uncertainties and other factors which may cause the actual results and events to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information.

Such risks and uncertainties include, without limitation, those relating to: requirements for additional capital and no assurance can be given regarding the availability thereof; the outcome of discussions with creditors and vendors; potential creditor protection proceedings; the ability of the Company to complete the ramp-up of the Underground Mine within the expected cost estimates and timeframe; the impact of COVID-19 on the business and operations of the Company; the state of financial markets; history of losses; dilution; adverse events relating to milling operations, construction, development and ramp-up, including the ability of the Company to address underground development and process plant issues; ground conditions; cost overruns relating to development, construction and ramp-up of the Underground Mine; loss of material properties; interest rate increases; global economy; limited history of production; future metals price fluctuations; speculative nature of exploration activities; periodic interruptions to exploration, development and mining activities; environmental hazards and liability; industrial accidents; failure of processing and mining equipment to perform as expected; labour disputes; supply problems; uncertainty of production and cost estimates; the interpretation of drill results and the estimation of mineral resources and reserves; changes in project parameters as plans continue to be refined; possible variations in ore reserves, grade of mineralization or recovery rates from management’s expectations and the difference may be material; legal and regulatory proceedings and community actions; accidents; title matters; regulatory approvals and restrictions; increased costs and physical risks relating to climate change, including extreme weather events, and new or revised regulations relating to climate change; permitting and licensing; dependence on management information systems and cyber security risks; volatility of the market price of the Company’s securities; insurance; competition; hedging activities; currency fluctuations; loss of key employees; other risks of the mining industry as well as those risks discussed in the Company’s Management’s Discussion and Analysis in respect of the year ended December 31, 2021 and the quarter ended March 31, 2022 and in the section entitled “Risk Factors” in the Company’s Annual Information Form dated March 31, 2022. The forward-looking statements and information contained in this news release are based upon assumptions management believes to be reasonable, including, without limitation: no adverse developments in respect of the property or operations at the project; no material changes to applicable laws; the ramp-up of operations at the Underground Mine in accordance with management’s plans and expectations; no worsening of the current COVID-19 related work restrictions; reduced impacts of COVID-19 going forward; the Company will be able to obtain sufficient additional funding to complete the ramp-up, no material adverse change to the price of copper from current levels; and the absence of any other factors that could cause actions, events or results to differ from those anticipated, estimated or intended.

The forward-looking information and statements are stated as of the date hereof. The Company disclaims any intent or obligation to update forward-looking statements or information except as required by law. Although the Company has attempted to identify important factors that could cause actual actions, events, or results to differ materially from those described in forward-looking information and statements, there may be other factors that could cause actions, events or results not to be as anticipated, estimated or intended. Specific reference is made to “Risk Factors” in the Company’s Management’s Discussion and Analysis in respect of the year ended December 31, 2021 and the quarter ended March 31, 2022 and “Risk Factors” in the Company’s Annual Information Form dated March 31, 2022, for a discussion of factors that may affect forward-looking statements and information. Should one or more of these risks or uncertainties materialize, should other risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results and events may vary materially from those described in forward-looking statements and information. For more information on the Company and the risks and challenges of its business, investors should review the Company’s filings that are available at www.sedar.com.

The Company provides no assurance that forward-looking statements and information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or information.

Tags #InvestingInBatteryMetals, #InvestingInCopper, #JuniorMining, #MauriceJackson, #MilesFranklin, #NCU, #ProvenAndProbable, #PumpkinHollow, #RandyBuffington, nevada copper, proven and probable

Base Metals Energy Junior Mining Nevada Copper

Nevada Copper Provides Operational Activity Update

Post author By admin
Post date December 9, 2021

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.

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.

Tags #InvestingInBatteryMetals, #InvestingInCopper, #MauriceJackson, #ProvenAndProbable, maurice jackson, NCU, nevada copper, NEVDF, Proven and Proabble, Randy Buffington

Base Metals Energy Junior Mining Nevada Copper

Nevada Copper Announcrs Closing of Public Offering

Post author By admin
Post date November 29, 2021

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.

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.

Tags maurice jackson, NCU, nevada copper, proven and probable, Randy Buffington

Base Metals Energy Exclusive Interviews Junior Mining Nevada Copper Noram Lithium

Andrew Hecht – Green Energy Are Catalysts For Lithium And Copper

Post author By admin
Post date November 14, 2021

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.

Written By: Andrew Hecht, on behalf of Maurice Jackson of Proven and Probable.

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.

Tags Andrew Hecht, copper, Lihtium, maurice jackson, NCU, nevada copper, Noram Lithium, NRM, proven and probable

Base Metals Energy Junior Mining Nevada Copper Noram Lithium

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

Post author By admin
Post date November 12, 2021

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.

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

Source: CQG

Source: Trading Economics

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

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

Source: Barchart

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

Source: Barchart

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

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

Written By: Andrew Hecht, on behalf of Maurice Jackson of Proven and Probable.

Tags maurice jackson, NCU, nevada copper, Noram Lithium, NRM, proven and probable

Base Metals Breaking Junior Mining Nevada Copper

Nevada Copper Announces Overnight Marketed Public Offering of Units

Post author By admin
Post date November 10, 2021

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 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.

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.

Tags maurice jackson, NCU, nevada copper, NEVDF, proven and probable, Randy Buffington

Base Metals Energy Junior Mining Nevada Copper

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

Post author By admin
Post date November 8, 2021

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 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

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.

Tags NCU, nevada copper, pumpkin hollow, Randy Buffington

Base Metals Breaking Energy Junior Mining Nevada Copper

Copper Is Heading For New Highs- A Bullish Trend In Nevada Copper (NEVDF)

Post author By admin
Post date October 22, 2021
Sticky post

Copper corrected from the May record high and made higher lows
Four reasons the copper bull will take the price to new highs
Impressive price action in the face of Chinese selling
Nevada Copper- Three reasons why NEVDF is could outperform percentage gains in the nonferrous metal
Bull markets rarely move in straight lines- The next leg for the copper bull has begun

When Goldman Sachs called copper “the new oil” in April 2021, the price was on its way to a new record high at nearly $4.90 on the nearby COMEX futures contract. The world’s most active and liquid copper market on the London Metals Exchange reached a peak at over $10,700 per ton in May. Copper blew through the 2011 $4.6495 previous all-time peak as a hot knife goes through butter.

Even the most aggressive bull markets rarely move in straight lines. Corrections can be brutal when prices accelerate on the upside, reaching unsustainable short-term peaks.

Copper ran out of upside steam before touching the $4.90 per pound level on futures and $10,750 per ton level on LME forwards. The price fell just below the $4 level in August, three months after reaching the high. Copper was still “the new oil” when the price dropped, and the world’s leading copper consumer was hoping it would continue to fall. China has done everything to push copper’s price lower, but the red metal has exhibited remarkable resilience.

Meanwhile, Nevada Copper Corporation (NEVDF) has been working day and night to ramp up production and transform its balance sheet. The market has rewarded the company as the share price has been steadily increasing since the beginning of October.

Mining companies provide investors with leveraged exposure to a commodity as they tend to outperform the price action on the upside and underperform during corrections. Junior mining companies can magnify the leverage. Copper’s recent explosive move suggests that new highs are on the horizon. NEVDF has the potential to do even better on a percentage basis as the company ramps up its production of the red industrial metal.

Copper corrected from the May record high and made higher lows Copper futures ran out of steam at just below the $4.90 level, with the LME forwards moving the $10,747.50 per ton level for the first time. The May highs led to a substantial correction that briefly took COMEX futures below $4 per pound in August.

Source: CQG The chart shows the decline from $4.8985 in May to a low of $3.9615 in mid-August, a 19.1% correction. COMEX futures made higher lows of $4.0220, $4.0545, and $4.1140 in late September and early October before blasting off on the upside to over the $4.70 level as of October 15.

Source: Barchart

The chart illustrates the decline from $10,747.50 on May 10 to a low of $ 8,740 per ton on August 19 as copper forwards corrected by 18.7%. Copper then made higher lows at $8,810 on September 21 and $8,876.50 on October 1 before exploding higher to the $10,281 level on October 15.

Four reasons the copper bull will take the price to new highs

The four leading factors supporting a continuation of new and higher highs in the copper market are:

Rising inflation– CPI rose by 5.4% in September, once again exceeding expectations. While the Fed will likely begin tapering quantitative easing, tapering is not tightening. Moreover, fiscal stimulus continues as the multi-trillion budget will pump more inflationary stimulus into the economy.
Building demand– The infrastructure rebuilding package in the US will increase copper requirements for construction projects to rebuild the crumbling roads, bridges, tunnels, airports, schools, and government buildings over the coming years. Moreover, China’s copper requirements will continue to increase as the world’s most populous country builds infrastructure.
Decarbonization– Addressing climate change boosts copper demand. As Goldman Sachs said in April, decarbonization does not occur without copper, making the metal “the new oil.” Copper requirements for EVs, wind turbines, and other clean energy projects is a multi-decade affair for the red metal.
Supply shortages– Copper mining companies are scrambling to find new supply sources. Production can’t keep pace with demand- It takes eight to ten years to bring new copper mining projects on stream. BHP, a leading global mining company, is in talks with Ivanhoe Mines for participation in the Western Foreland exploration area in the politically dicey Democratic Republic of the Congo.

Bull markets tend to experience severe selloffs. China has attempted to cool off the bullish copper and other nonferrous metals markets. The world’s leading copper consumer has the most to lose from runaway prices on the upside.

Impressive price action in the face of Chinese selling

On September 1, China auctioned 150,000 tons of copper, aluminum, and zinc from strategic stockpiles, which was the third auction sale since early July, attempting to temper the market’s bullish price action. The market had expected the sales. Copper rallied to the highest level since early August on September 13, with many other base metals following the red metal higher. The price then retreated, but copper made a higher low on September 21. The Chinese auction to cool off the rally put 80,000 tons of copper, 210,00 tons of aluminum, and 130,000 tons of zinc into the market since early July. Since the day of the first auction, copper, aluminum, and zinc prices all posted gains. Imagine where prices might be if China did not sell from its strategic stocks.

In early October, China auctioned the fourth round of base metals, lifting the total sales to 570,000 metric tons. Copper and all the base metals posted explosive gains after the latest auction. China is selling copper, aluminum, and zinc from its strategic stockpiles. The attempt to stem price appreciation makes the Chinese a buyer of the metals on price weakness to replace its stocks. However, the auctions have not had the desired impact on price. The price action has been more than impressive in the face of the sales.

While BHP looks towards the DRC and other regions for new copper supplies, Nevada Copper is making significant headway on its production project in a highly stable political and economic environment in the United States. Moreover, Nevada is a state that continues to encourage mining activity and is rich in red metal reserves.

Nevada Copper- Three reasons why NEVDF has the potential to outperform percentage gains in the nonferrous metal

Nevada Copper (NEVDF) has made great strides over the past weeks and months. A successful junior mining company is positioned best to profit during a bull market in the commodity it extracts from the earth’s crust. Three factors support the price of NEVDF shares as copper has taken off on the upside again:

Factor one: Turing the corner on operations in Q3- On October 6, NEVDF provided an update on operational performance at the company’s underground mine at its Pumpkin Hollow project, noting:

Copper in concentrate produced during September increased by 265% compared to August, driven by higher stope production. Approximately 30,386 tons of ore processing yielded 682 tons of copper concentrate at an average grade of 22%, reflecting 150 tons of copper output.
Stoping is the process of extracting the desired ore or mineral from an underground mine, leaving open space called a stope. Stoping at Pumpkin Hollow significantly accelerated since mid-August, with the second and third stope panels fully mined and a fourth stope panel currently being mined. Further stopes are planned for October and November, and the high-grade Sugar Cube zone to be mined during the final months of 2021.
NEVDF experienced the highest monthly development footage achieved since April 2021 in September, with a 12% increase over August. Approximately 750 lateral equivalent feet were advanced in September.

Outgoing Interim CEO Mike Brown said, “I am very pleased to see the improved trajectory in our production ramp-up and a recovery in productivities. The increased ore production was a key objective for September, and together with the improving productivities on-site, along with the ongoing management strengthening, provide further confidence in the mine ramp-up.”

Randy Buffington, a veteran mining executive with previous management experience at Barrick, Placer Dome, and Cominco, is taking over as President and CEO at Nevada Copper.

Factor two: On October 12, NEVDF announced it had agreed with its senior project lender and concluded a non-binding term sheet with its largest shareholder to provide additional financing and a significant deferral and extension of its debt facilities. The move offers Nevada Copper greater balance sheet flexibility and support for the ramp-up of its underground mining operations and advancement of its open-pit project and broader property exploration targets. The highlights of the more flexible financing arrangement include:

Two-year deferral of first loan repayments scheduled to begin in July 2025.
Extension of loan amortization with the final maturity pushed to July 2029.
Deferral of the formal long stop date for the project as the completion test was deferred to June 2023.
All outstanding shareholder loans were consolidated under an amended existing shareholder credit facility.
A two-year extension to maturity data until 2026 with no scheduled payments before final maturity.
An increase of $41 million in additional liquidity under the amended credit facility.

Randy Buffington, NEVDF’s new CEO, said, “These combined balance sheet improvements provide significant additional runway for the Company as we move forward to complete the ramp-up of our underground operations. The ongoing support of two of our major stakeholders provides further validation of the significant inherent value of our copper operations in Nevada and allows us to continue to pursue the growth potential embedded within our asset base.”

Factor three: NEVDF’s value proposition is compelling when compared to peers. The chart shows NEVDF’s market cap versus its enterprise value compared to other diversified metals and mining companies with similar market caps:

Source: Seeking Alpha

As the chart highlights, the enterprise value is over 2.2 times the current $173.53 million market cap, leading to plenty of upside room for NEVDF shares. There is plenty of room for growth as the enterprise value will rise with output from the underground and open-pit mining operations over the coming months and years. According to data from Seeking Alpha, at 97 cents per share on October 15, NEVDF had a $173.53 million market cap. The average daily volume in the past 15 trading days from all exchanges stood at just over 2,500,000 shares.

Source: Barchart

The chart shows the rise from 38.78 cents on October 1 to a high of 99.2 cents per share on October 14. NEVDF shares closed not far from the high at 96.56 cents on Friday, October 15.

The trend in copper and NEVDF is bullish, and the trend is always your best friend in markets.

Bull markets rarely move in straight lines- The next leg for the copper bull has begun

Bull markets can be bucking broncos as corrections are often downdrafts in prices. Copper’s decline from nearly $4.90 to below $4 and recovery to over $4.70 on October 15 is a bullish sign for the red metal.

Copper’s strength, along with the other base metals in the face of Chinese stockpiling selling, has been more than impressive and is a testament to the bullish factors that are likely to push the price higher. Goldman Sachs expects LME copper forwards to reach the $15,000 per ton level by 2025, putting COMEX futures over $6.80 per pound. Other analysts see the price rising to as high as $20,000 per ton as decarbonization will keep demand outpacing supplies.

Bull markets often take prices far higher than analysts believe possible before they peak. As the world searches for more copper to meet the rising demand, Nevada Copper’s mines are in the most economically and politically stable region of the world. NEVDF shares may have just begun to rally as the price threatens to move over the $1 per share level.

Tags NCU, nevada copper

Base Metals Breaking Energy Exclusive Interviews Junior Mining Nevada Copper

NEVADA COPPER – Reaching Commercial Scale Production

Post author By admin
Post date October 21, 2021

Tags maurice jackson, NCU, nevada copper, Open-Pit, pumpkin hollow, Randy Buffington, Underground

Base Metals Energy Junior Mining Nevada Copper

Nevada Copper Announces Transformative Balance Sheet Improvement

Post author By admin
Post date October 12, 2021

YERINGTON, Nev., Oct. 12, 2021 (GLOBE NEWSWIRE) — Nevada Copper Corp. (TSX: NCU) (OTC:NEVDD) (“Nevada Copper” or the “Company”) today announced that it has entered into an agreement with its senior project lender and a non-binding term sheet with its largest shareholder to provide additional financing and 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.

Highlights

Extension of Senior Project Facility:
- Two-year deferral of first loan repayments: First debt repayments deferred by two years, with Tranche A repayment only scheduled to begin in July 2025, providing significant additional flexibility
- Extension of loan amortization schedule: Extended amortization schedule with final maturity now occurring in July 2029
- Additional project completion flexibility: The long stop date for the formal commercial project completion test deferred until June 2023
Consolidation and extension of shareholder loans
- Consolidation of shareholder loans: All outstanding shareholder loans consolidated under a single existing shareholder credit facility, as amended (the “Amended Credit Facility”)
- Two-year extension to maturity date: Maturity of the Amended Credit Facility deferred until 2026, with no scheduled payments before final maturity
- Additional committed liquidity: Increased availability of US$41 million under the Amended Credit Facility

Randy Buffington, Chief Executive Officer of the Company, commented: “These combined balance sheet improvements provide significant additional runway for the Company as we move forward to complete the ramp-up of our underground operations. The ongoing support of two of our major stakeholders provides further validation of the significant inherent value of our copper operations in Nevada and allows us to continue to pursue the growth potential embedded within our asset base”.https://s.yimg.com/rq/darla/4-9-0/html/r-sf-flx.html

Further Details

Senior Project Facility Extension

The Company has entered into the following amendments to its amended and restated credit facility (the “KfW Facility”) with its senior project lender, KFW-IPEX Bank:

Under the US$115 million Tranche A of the KfW Facility:
- The first debt repayment now occurs two years later on July 31, 2025, with the debt service reserve account to be funded six months prior;
- The final amortization now occurs one year later on July 31, 2029;
- The interest margin on the loan increases by 0.5% to 2.1%, reflective of the extended loan tenor; and
- Commencement of the project cash sweep under the existing facility agreement will be deferred by two years to January 31, 2024. A one-time extraordinary cash sweep of excess cash will also be deferred by two years to July 31, 2025.
Under the US$15 million Tranche B of the KfW Facility:
- The first debt repayment now occurs two years later on July 31, 2024, with no debt service reserve account requirement;
- The final amortization now occurs later on July 31, 2025; and
- The interest margin on the loan increases by 0.5% to 5.4%, reflective of the extended loan tenor.

In relation to these changes, an amendment fee of 0.25% is payable with 90 days of closing of the facility amendments, and a further 0.75% is payable following the project completion test.

A condition precedent of the facility amendment is the receipt by the Company’s wholly-owned subsidiary, Nevada Copper, Inc., of at least US$40 million in net proceeds from debt or equity financings (the “KfW Condition”). If fully drawn the Amended Credit Facility would satisfy this condition.

Shareholder Loans Consolidation and Extension

Concurrent with securing the amendments to the KfW Facility, the Company has entered into a non-binding term sheet with Pala Investments Limited (“Pala”), the Company’s largest shareholder, providing for all outstanding shareholder loan promissory notes to be consolidated under the existing credit facility previously provided by Pala to the Company on February 3, 2021. The Amended Credit Facility will reflect the following amendments:

The Amended Credit Facility shall be increased to US$138 million, with the use of funds to include:
- Additional liquidity of US$41 million (the “Additional Tranche”), which if fully drawn would satisfy the conditions precedent under the amended KfW Facility; and
- The retirement of all other outstanding shareholder loans in the form of promissory notes;
Maturity date extended by two years until 2026 under the Amended Credit Facility, with no scheduled payments before final maturity; and
No change to the existing interest rates or other material terms in the Amended Credit Facility.

In relation to these changes, an amendment and extension fee of 4% of the principal amount of the Amended Credit Facility, excluding the Additional Tranche, shall be payable at closing of the Amended Credit Facility, such fee to be capitalized to the Amended Credit Facility balance. A disbursement fee of 2% will apply to amounts of the Additional Tranche that are drawn by the Company and will be capitalized to the Amended Credit Facility balance at the time of such draws. Fifteen million common share warrants shall be issued to Pala, exercisable until the maturity of the Amended Credit Facility, at an exercise price equal to the lower of a 25% premium to the 5-day volume weighted average price of the shares of the Company immediately prior to the closing of the Amended Credit Facility, or a 25% premium to the 5-day volume weighted average price of the shares of the Company immediately following the announcement of the offering price of any equity financing the Company may pursue prior to the closing of the Amended Credit Facility.

Should the Company complete one or more equity financings in the future, Pala will be entitled to equitize and/or convert up to US$35 million of principal loan amounts outstanding under the Amended Credit Facility into new common shares of the Company on the same terms of any such financing.

The terms of the Amended Credit Facility have been reviewed and approved by the independent directors of the Company. The closing of the Amended Credit Facility is subject to the negotiation of definitive documentation and the approval of the TSX. There can be no assurance that definitive documentation in respect of the Amended Credit Facility as outlined above will be entered into. If the Amended Credit Facility is not entered into, the Company will require other financing to be able to satisfy the KfW Condition.

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 Amended Credit Facility, including the terms thereof, and the satisfaction of the KfW Condition.

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; 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.

Tags Investing In Nevada, investingincopper, Investinginenergy, NCU, nevada copper

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Tag: nevada copper

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