Nevada Copper Corp. (TSX:NCU) has closed a US$20 million bridge loan facility with Pala Investments Ltd.. Pala is a major shareholder of Nevada Copper.
As quoted in the press release:
The initial term of the facility is four months, with up to two additional two month extensions. The Facility will be drawn in US$5 million tranches. The annual interest rate is 10% and with a 2.7% arrangement fee payable during the initial term. The Facility is secured against the Company’s assets, but is subordinate to the security granted in connection with the US$200 million senior credit facility announced by the Company on March 28, 2013.
Nevada Copper president and CEO, Giulio Bonifacio, said:
We are very pleased that Pala, our major shareholder, has provided their continued support by way of this Facility. The Facility provides additional time to fully optimize the funding mix for the balance of Stage 1 capex, while also allowing the Company to further evaluate the various strategic opportunities currently under review. During the period of the Facility, we will continue sinking of our main production shaft and further advance the Stage 2 Land Bill and permitting.
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