Nevada Copper Receives US$20 Million from Closing of Second
YERINGTON, Nev., Dec. 29, 2022 (GLOBE NEWSWIRE) — Nevada Copper (TSX: NCU ) (OTC: NEVDF ) (FSE: ZYTA ) (“Nevada Copper” or the “Company”) is pleased to announce that the second tranche of financing totaling $20 million provided by Mercuria Energy (“Mercuria”) and Triple Flag Precious Metals Corp. (“Triple Flag”) was issued from escrow to Nevada Copper as part of the Company’s Restart Financing Package (the “Restart Financing Package”), the first tranche of which closed on October 28, 2022. In exchange for of its $10 million portion of the second tranche of financing, Mercuria received 63,411,540 common shares of the Company. The $10 million portion of the second tranche of financing provided by Triple Flag resulted in the completion of an increase in its existing smelter net rate of return on the Company’s open-pit project from 0.7% to 2%. In connection with the closing conditions related to the second tranche, the Company and Mercuria have agreed that certain informational and other matters will be addressed after the closing. Please see the Company’s previous press releases on October 28, 2022 and October 25, 2022 for additional details regarding the Refinancing Package, including the use of proceeds therefrom.
The Company continues to advance restart activities at its Pumpkin Hollow underground copper mine (the “Underground Mine”), including:
- Mining development contractor – The company is finalizing its selection of a mine development contractor and expects to award a contract in Q1 2023.
- Capital projects – The company is finalizing contract terms with a capital projects contractor to complete the installation of the Geho dewatering system and coarse ore bin and rehabilitation of the ventilation shaft. Authorization to proceed with mobilization planning is granted to allow for an appropriate escalation once the contract is awarded.
- Underground development work – The lifting of material to the surface, recently started at the Underground Mine, and other development activities, such as the advancement through the final dam passage, the completion of the maintenance shop and the rehabilitation of the ore passages, continue in preparation for the mobilization of a mining development contractor in 2023.
About Nevada Copper
Nevada Copper (TSX: NCU) is a copper producer and owner of the Pumpkin Hollow copper project. Located in Nevada, USA, Pumpkin Hollow has significant reserves and resources including copper, gold and silver. Its two fully permitted projects include a high-grade underground mine and processing facility, which is now in the production phase, and a large-scale open-pit PFS phase project.
President & CEO
For additional information, please see the Company’s website at www.nevadacopper.com or contact:
Tracey Thom | Vice President, IR and Community Relations
+1 775 391 9029
Cautionary Language About Forward-Looking Statements
This news release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable Canadian securities laws. All statements in this release, other than statements of historical fact, are forward-looking statements. Such forward-looking information and forward-looking statements specifically include, but are not limited to, statements relating to and the timing of development and growth plans and activities at the Underground Mine.
Forward-looking statements and information include statements about management’s expectations and beliefs. Often, but not always, forward-looking statements and forward-looking information can be identified by the use of words such as “plans”, “expects”, “potential”, “expected”, “anticipated”, “targeted”, “budget” , “planned”, “estimates”, “anticipates”, “intends”, “anticipates” or “believes” or their negatives or variations of such words and phrases or statements that certain actions, events or results “may” , “may,” “will,” “could” or “will” be obtained, occur or be achieved. Forward-looking statements or information should not be read as guarantees of future performance and results. They are subject to risks, uncertainties and other known and unknown factors that could cause actual results and events to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information.
Such risks and uncertainties include, without limitation, those relating to: requirements for additional capital and no assurance can be given as to its availability; the outcome of discussions with vendors; the Company’s ability to complete the development of the underground mine within the expected cost estimates and time frame; the impact of COVID-19 on the Company’s business and operations; the state of the financial markets; loss history; dilution; adverse events related to milling operations, construction, development and erection, including the Company’s ability to address subsurface development and plant processing issues; soil conditions; cost overruns in connection with the development, construction and erection of the underground mine; loss of material properties; increase in interest rates; Global economy; limited production history; future fluctuations in metal prices; speculative nature of research activities; periodic interruptions of exploration, development and mining activities; environmental risks and liability; industrial accidents; failure of mining and processing equipment to perform as expected; labor disputes; supply problems; production uncertainty and cost estimates; interpretation of drill results and estimation of mineral resources and reserves; changes in project parameters as plans continue to be developed; potential variations in ore reserves, mineralization rates or recovery rates from management’s expectations and the difference could be material; legal and regulatory procedures and community actions; accidents; the title matters; regulatory approvals and restrictions; increased costs and physical risks related to climate change, including extreme weather events, and new or revised regulations related to climate change; permitting and licensing; reliance on management information systems and cyber security risks; market price volatility of the Company’s securities; insurance; competition; protective activities; currency fluctuations; loss of key employees; other mining industry risks as well as those risks discussed in the Company’s Management’s Discussion and Analysis for the year ended December 31, 2021 and the quarter ended September 30, 2022 and in the section entitled “Risk Factors” in the Annual of the Company’s Information Form dated March 31, 2022. The statements and forward-looking information contained in this news release are based on assumptions that management believes to be reasonable, including, without limitation: no adverse developments with respect to the property or operations in project; no material change in applicable laws; setting up operations at the Underground Mine in accordance with management’s plans and expectations; no worsening of current work restrictions related to COVID-19; reduced future impacts of COVID-19; The Company will be able to obtain sufficient additional funding to complete the raise, without a material adverse change in the price of copper from current levels; and the absence of any other factors that could cause actions, events or results to differ from those anticipated, estimated or intended.
Forward-looking information and statements are stated as of the date of this document. The Company disclaims any intention or obligation to update any forward-looking statements or information, except as required by law. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in the forward-looking information and statements, there may be other factors that could cause actions, events or results to differ materially from those described in the forward-looking information and statements. not be as anticipated, estimated or intended. A specific reference is made to “Risk Factors” in the Company’s Management’s Discussion and Analysis with respect to the year ended December 31, 2021 and the quarter ended September 30, 2022 and “Risk Factors” in the Company’s Annual Information Form , dated March 31, 2022. , for a discussion of factors that may affect forward-looking statements and information. If one or more of these risks or uncertainties materialize, if other risks or uncertainties materialize or if underlying assumptions prove incorrect, actual results and events may differ materially from those described in the forward-looking statements and information. For more information on the Company and its business risks and challenges, investors should review the Company’s filings available at www.sedar.com.
The Company provides no assurance that forward-looking statements and information will prove to be accurate, as actual results and future events may differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or information.