Nevada Copper Corp’s (TSX: NCU) has entered into a $115 million credit agreement with Germany-based KfW IPEX-Bank to manage construction and ramp-up development of the underground mine at its 100% owned Pumpkin Hollow copper project, which remains on target for production in Q4 2019. Pumpkin Hollow is a high-grade iron oxide copper gold (IOCG) deposit located within a porphyry copper district that has a large metal endowment in deposits controlled by Nevada Copper and other companies.
The company said it will file a preliminary prospectus supplement to its short form base shelf prospectus dated June 13, 2018 in connection with a public offering of common shares on an underwritten basis. The public offering will be conducted through a syndicate of underwriters, led by National Bank Financial and RBC Capital Markets acting as joint book-runners, and including Scotiabank as co-lead underwriter.
Nevada Copper has also entered into complementary financing and offtake arrangements in connection with the including a $35 million working capital facility with Concord Resources, and offtake agreements with Aurubis AG and Aurubis Bulgaria AD and Concord.
“We are pleased to be working with our respective offtake partners and working capital providers as we bring the underground project into first production later this year,” Matthew Gili, Nevada Copper’s CEO said in a release.
The execution of the underground project is progressing at a strong and steady pace with both underground development and surface works on track. Further, we have responded to our shareholders and intend to accelerate our exploration program both at the Open Pit and our newly-defined targets around surface mineralization contained in the recently expanded land position,” Gili said.
At market close on Wednesday, Nevada Copper’s shares were priced at 40 Canadian cents on the TSX. The company has a C$261 million market capitalization.
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