Nevada Copper Amends Red Kite and Pala Loan Terms

Nevada Copper Corp. (TSX:NCU) announced it has entered into an agreement to further amend its senior secured loan agreement dated December 31, 2014 with EXP T1 Ltd. an affiliate of Red Kite Mine Finance, which was previously amended on September 30, 2015 and January 2, 2016.
As quoted in the press release:

Additionally, the Company has today agreed with Pala Investments Limited (“Pala”) on a term sheet under which the maturity of Pala’s existing subordinated debt would be extended to December 31, 2017. Pala will also provide an additional US$5 million of funding as a convertible loan subordinated in priority to the Red Kite secured loan (the “New Pala Loan”). The parties will now proceed to put in place the definitive binding transaction agreements to document these arrangements as further described below.
Red Kite Loan
The current loan amendments further improve the terms of the Red Loan Agreement as follows:

• reducing the required funding under a 2016 Financing (“the 2016 Financing”) to US$10 million from $15 million;
• extending the outside date for completion of the 2016 Financing to May 31, 2016 from April 15, 2016;
• reducing the working capital maintenance requirement to US$2 million from US$5 million;
• confirms December 31, 2017 as the final date for satisfaction of the initial loan drawdown conditions;
• extending the outside date of first commercial production to March 31, 2020; and,
• eliminating the requirement for 2017 loan interest to be deposited in escrow by December 31, 2016, instead only requiring that interest be paid on a monthly basis in advance starting in January 2017.

The Amending Agreement includes customary provisions for such agreements, including restrictive covenants applicable until the completion of the 2016 Financing. If the Company does not complete the 2016 Financing before May 31, 2016, all amounts outstanding under the Red Kite Loan Agreement will be immediately due and payable by the Company, and Red Kite will be in a position to exercise all remedies available to it under the Red Kite Loan Agreement and related security agreements.

Nevada Copper CEO, Giulio Bonifacio, stated:

Nevada Copper is pleased to have the continued support of both Red Kite and Pala during what has been an extraordinarily challenging period in the mining sector and capital markets. The much improved Red Kite loan terms and support from Pala will provide the Company with the required time to further advance current discussions with a focus on strategic alternatives. Pumpkin Hollow is a Tier 1 asset which has been significantly derisked and is fully- permitted/shovel-ready with a 1,900 foot production-sized shaft with lateral development, all of which will continue to assist Management as it advances current discussions with several strategic groups.

Connect with Nevada Copper Corp. (TSX:NCU) to receive an Investor Presentation.