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TSX:NCU

Nevada Copper Corp. (TSX:NCU) announced today an amendment to both the Red Kite Secured Loan Facility and the Pala Bridge Loan Facility.

Nevada Copper Corp. (TSX:NCU) announced today an amendment to both the Red Kite Secured Loan Facility and the Pala Bridge Loan Facility.
As quoted in the press release:

Amendment to Red Kite Secured Loan Facility
On December 30, 2014, a US$200 million loan facility, of which US$90 million has been drawn down, and an offtake agreement were executed with an affiliate of Red Kite (“Red Kite”). On September 30, 2015, the loan facility was amended (the “Amended Loan Facility”) to extend the maturity date to December 31, 2021 while the dates of loan drawdown, repayment commencement and first commercial production, were all extended by 12 months. Under the Amended Loan Facility, interest payments are accrued from July 1, 2015 to December 31, 2016, with the first interest payment thereafter due on March 31, 2017. Accrued interest is capitalized to loan principal along with a 3.5% transaction fee.
With Pumpkin Hollow’s large 70,000 tons/day Integrated development option recently permitted, the Amended Loan Facility will provide more-than-adequate time, in light of current market conditions, for the Company to consider the optimum development and financing strategy for the Project.
The 2014 copper offtake agreement was also amended to allow Red Kite a fixed tonnage option should Nevada Copper elect to develop a larger open pit operation. Under this amendment, Red Kite can elect to convert their percentage entitlement to a fixed tonnage of payable copper from this proposed larger operation. The tonnage of payable copper to be delivered is based on the payable copper projected for production from the stand-alone underground operation. This fixed tonnage of copper to be delivered is capped at the levels projected by the underground mine plan only.
Amendment to Pala Bridge Loan Facility
On September 30, 2015, the current US$25 million subordinated bridge loan facility with Pala Investments Limited (“Pala”) was extended to June 30, 2016 and may be extended to a later date that will be mutually agreed between the Company and Pala. The Company has drawn down US$20 million of this facility.

Nevada Copper President & CEO, Giulio Bonifacio, stated:

We are extremely pleased to have the continued support of our major shareholder, Pala, in addition to our lender Red Kite. Pumpkin Hollow represents the only large, fully-permitted copper deposit in the Americas not currently owned by a major. Despite challenges in the mining sector and capital markets, the continued support of Pala will allow Nevada Copper additional time to carefully consider financing and strategic options that will accurately reflect the fair value of Pumpkin Hollow for all our shareholders. This value is further supported by our timely delivery on key project milestones, most recently, permits.

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