Nevada Copper gets offer to lift restart financing to $118 million

By Wendy Van Sickle

Columbus, Ohio, Oct. 6 – Nevada Copper Corp. said its largest shareholder, Pala Investments Ltd., has offered additional financial support in the form of a $25 million backstop commitment, increasing the liquidity available to the company under the restart financing package up to $118 million, according to a news release.

The amount is in addition to the previously announced $20 million equity investment under the restart package that was announced in August, at which time the company expected a restart financing package totaling $93 million.

Nevada Copper also said it has been discussing a non-binding term sheet proposal received from a third-party strategic investor for a separate investment that would be implemented following the restart financing package. This transaction would provide additional funding and result in a change of control of the company.

In connection with consideration of the change-of-control proposal, the company said it is in discussions with its various financing parties to complete the restart financing package as soon as possible, which will allow Nevada Copper additional time to evaluate, negotiate and, if appropriate, finalize the proposal together with the implementation of the financing package.

If an agreement is reached on the change-of-control proposal, that transaction and the restart financing package are expected to provide the company with resources sufficient to complete the restart plan through to positive cashflow.

Nevada Copper is a Vancouver, B.C.-based mining company.

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