The Conversation (0)
Nevada Copper Corp. (TSX:NCU) announced that it has closed a copper concentrate off-take and a $US 200 million senior secured loan facility. The Company will use the proceeds for the construction of an underground mining operation at Pumpkin Hollow.
As quoted in the press release:
US$36 million has been paid to Nevada Copper. This cash amount, combined with the Company’s current treasury, provides approximately US$65 million (excluding marketable securities currently valued at approximately US$17 million) to continue current shaft sinking activities, commence detailed engineering and secure long lead time equipment;
US$15 million will be advanced on receipt of the key State permits allowing for the commencement of full construction of an underground mining operation. These permits are expected in Q2-2013 (See February 15, 2013 News Release);
US$10 million will be advanced on passage of the Lyon County Bill and land conveyance to the City of Yerington (See February 15, 2013 News Release). This bill has been introduced on a bi-partisan basis in both the Senate and U.S. House of Representatives. Passage of the bill does not affect the development timeline of the underground mining operation;
Nevada Copper, President and CEO, Giulio Bonifacio, commented:
We are extremely pleased with the closing of this financing with Red Kite which further validates and provides independent confirmation that the Pumpkin Hollow project will support a low-risk, and economically robust, copper mine. This financing will satisfy 100% of our capital requirements in 2013 on a non-dilutive basis while more importantly allowing us to move to commercial production in 2015 subject to receipt of permits which are expected in Q2-2013. We envisage additional project capital as required in 2014 to be funded by way of a precious metal stream, subordinated debt and a modest level of equity. Another compelling feature of this financing is that it will allow Nevada Copper the flexibility to move forward on funding the larger open pit operation by way of precious metal stream, project debt, concentrate off-take and/or strategic partnership without restriction as the Red Kite transaction is specific to the underground operation only.
Click here to read the Nevada Copper Corp. (TSX:NCU) press release