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Nevada Copper Closes Initial Phase of Transformational Refinancing Transaction

Maxis Law (formerly Axium Law) represented Nevada Copper with a team that included Morgan Hay, Helen Racic and Abdullah Abunafeesa

On December 22, 2017, Nevada Copper announced that it had entered into arrangements for a US$378 million construction financing and recapitalization package (the “Financing and Recapitalization Package”) in connection with providing a comprehensive funding solution towards first production in 2019 from its 100%-owned Pumpkin Hollow Property. The Financing and Recapitalization Package is to be provided by Triple Flag Mining Finance Bermuda Ltd. (“Triple Flag”), Pala Investments Ltd. (“Pala”), Red Kite Mine Finance (“Red Kite”), Concord Resources Ltd. (“Concord”) as well as several institutional equity investors including JP Morgan Asset Management UK, and comprises the following:

  • US$70 million precious metals stream from Triple Flag;
  • US$80 million senior secured loan from Red Kite;
  • US$53 million debt to equity conversion by Red Kite and Pala;
  • US$25 million working capital facility which Concord has been mandated to arrange for the Company;
  • US$90 million equity commitment from various equity investors including Pala; and
  • US$60 million equity backstop from Pala which can be utilized at Nevada Copper’s option for subsequent equity offerings.

On January 19, 2018, the Company announced the completion of the first stage of the Financing and Restructuring Package, which consisted of a private placement of 256,410,256 special warrants of the Company for aggregate gross proceeds of approximately C$128 million.

Nevada Copper is an exploration and development stage mining company that is engaged in the identification, acquisition, exploration and development of copper and other mineral properties located in the United States and elsewhere. Nevada Copper’s primary focus is the development and construction of the underground mining project at the Pumpkin Hollow Property (the “Underground Project”).  The Pumpkin Hollow Property also contains an additional separate mineral deposit that is amenable to open pit mining, which may be developed in a separate staged development following the construction of the Underground Project.

Further details regarding the Financing and Restructuring Package and Nevada Copper can be found on Nevada Copper’s website. Nevada Copper trades under the symbol “NCU” on the Toronto Stock Exchange.