Nevada Copper Provides Operations and Funding Updates
YERINGTON, Nevada, August 31, 2021 (GLOBE NEWSWIRE) – Nevada Copper Corp. (TSX: NCU) (OTC: NEVDF) (“Nevada Copper“or the”Society”) Today provided an update regarding the underground mine operations of its Pumpkin Hollow project (the“ Underground Mine ”), as well as an update on funding issues. All amounts below are expressed in US dollars.
Update of operations
- Arrest and lateral development: Construction and penetration through the aquifer dyke are now complete on the first crossing. Lateral development beyond this intersection is now on solid ground at a rate consistent with mine plan rates focused on establishing production from the East-North deposit. Additionally, with newly installed steel support beams, a second crossover is planned in the coming weeks, further improving development rates.
- Stop: The Company has operated the second Alphabet Zone stope at a CuEq grade of 1.45% and backfilling is expected to begin within the coming week.
- Surface fans: Delivery of the surface fans is on schedule, with installation and commissioning to be completed in Q4 2021 and sustainable lift rates of 3,000 tpd are expected to follow.
“We are happy to have completed our first crossing of the water dike allowing our development rates to increase in line with the expectations of our mining plan, ” said Mike Brown, interim CEO of Nevada Copper. “We look forward to continued increases in production rates in the third and fourth quarters of this year. “
- Discussions on the amendment of KfW’s credit facility: On August 31, 2021, the Company received an extension of the waiver from KfW IPEX-Bank (“KfW”), the Company’s principal project lender, until September 30, 2021 to complete the project completion test. (the “Long Project Shutdown Date”) under the Amended and Restated Credit Agreement (“Amended KfW Facility”). The Company is in talks with KfW regarding a longer term extension of the extended shutdown date of the project until 2023; deferral of debt service for up to 24 months; and the deferral of certain financial covenants under the modified KfW facility to further support the ramp-up of the underground mine. The Company expects the proposed extension and changes to be finalized within the next month. However, there is no guarantee that this extension and these changes will be finalized at this time or not at all. If the extension is not finalized, the Company would be in default under the modified KfW Facility.
- $ 13 million in additional cash: The existing promissory note provided by Pala Investments Limited, the Company’s largest shareholder (“2021 Promissory Note”) has been amended (subject to regulatory approval) to allow total borrowings of up to $ 55 million. dollars, providing an additional $ 13 million in liquidity to the Company. . Other prints made by the Company are subject to an agreed use of the product. The 2021 promissory note has a maturity date of June 30, 2022 and bears interest at the rate of 8% per annum on the amounts drawn. In accordance with the amendment, the 2021 promissory note now provides for an arrangement fee of 6% on the total commitment amount of $ 55 million, which will be capitalized. The proceeds will be used to finance the development and ramp-up of the underground mine and related working capital requirements. The amendment has been reviewed and approved by a committee of independent directors of the Company.
The information and technical data contained in this press release has been reviewed by Greg French, CPG, and Norm Bisson, P.Eng., For Nevada Copper, who are non-independent qualified persons within the meaning of NI 43-101.
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 licensed projects include the high-grade underground mine and processing facility, which are now in production, and a large-scale surface mine project, which is progressing to feasibility status.
NEVADA COPPER CORP.
Mike Brown, Interim President and CEO
For more information contact:
Rich Matthews, Investor Relations
+1 604 757 7179
This press release includes certain statements and information that constitute forward-looking information within the meaning of applicable Canadian securities laws. All statements contained in this press release, other than statements of historical fact, are forward-looking statements. These forward-looking statements and forward-looking information include, but are not limited to, statements relating to mining development plans, production and ramp-up plans, installation of equipment, requested modifications to the facility. of KfW’s amended credit and regulatory approval of the 2021 promissory note.
Forward-looking statements and information include statements regarding the expectations and beliefs of management. Often, but not always, forward-looking statements and forward-looking information can be identified by the use of words such as “plans”, “expects”, “potential”, “is expected”, “anticipated”, “is targeted ”,“ budget ”,“ planned ”,“ estimates ”,“ forecasts ”,“ intention to ”,“ foresees ”or“ believes ”or the negative aspects of these or variations of these words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “could” or “will” be taken, occur or be achieved. Forward-looking statements or information should not be interpreted as guarantees of future performance and results. They are subject to known and unknown risks, uncertainties and other factors which may cause actual results and events to differ materially from future results, performance or achievements expressed or implied by such forward-looking statements or information.
These risks and uncertainties include, but are not limited to, those related to: the Company’s ability to complete the ramp-up of the underground mine on time and on estimated costs; additional capital requirements and no assurance can be given as to their availability; the impact of the COVID-19 pandemic on the Company’s business and operations; the state of financial markets; loss history; dilution; adverse events related to grinding operations, construction, development and ramp-up, including the Company’s ability to resolve underground development and processing plant issues; failure to obtain extensions and modifications to the modified KfW facility; soil conditions; cost overruns related to the development, construction and ramp-up of the underground mine; loss of material properties; interest rates rise; Mondial economy; limited history of production; future fluctuations in metal prices; speculative nature of exploration activities; periodic interruptions of exploration, development and mining activities; environmental risks and liability; work accident; failure of processing and mining equipment to perform as intended; labor disputes; supply problems; uncertainty of production and cost estimates; interpretation of drilling results and estimation of mineral resources and reserves; changes in project parameters as plans continue to be refined; possible variations in ore reserves, mineralization grade or recovery rates from management’s expectations and the difference may be material; legal and regulatory proceedings and community actions; accidents; title matters; regulatory approvals and restrictions; increasing costs and physical risks associated with climate change, including extreme weather events, and new or revised climate change regulations; permits and licenses; volatility of the market price of the Company’s securities; Assurance; competetion; hedging activities; currency fluctuations; loss of key employees; other mining industry risks as well as the risks discussed in the Company’s management report for the year ended December 31, 2020 and in the section entitled “Risk Factors” of the Company’s annual information form dated December 18, 2020. March 2021. If one or more of these risks or uncertainties materialize, or if the underlying assumptions prove to be incorrect, actual results could differ materially from those described in the forward-looking statements and information. The forward-looking statements and information contained in this document are based on what management believes are reasonable assumptions, including, without limitation: no adverse development with respect to the ownership of the Pumpkin Hollow Project; no material changes to applicable laws; acceleration of underground mine operations in accordance with plans and management expectations; no worsening of current COVID-19 work restrictions; reducing the impacts of the COVID-19 pandemic in the medium and long term; no material adverse change in the price of copper from current levels; and the absence of any other factor that could cause actions, events or results to differ from those anticipated, estimated or anticipated. Forward-looking information and statements are made as of the date hereof. Nevada Copper disclaims any intention or obligation to update any forward-looking statements or information, except as required by law. Readers are referred to additional information regarding Nevada Copper’s business contained in Nevada Copper’s reports filed with securities regulatory authorities in Canada. Although the Company has attempted to identify material factors which could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors which could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors which could cause actions, events or results are not as expected, estimated or expected. For more information on Nevada Copper and the risks and challenges facing its business, investors should consult the documents filed by Nevada Copper which are available at www.sedar.com.
Nevada Copper provides no assurance that forward-looking statements and information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements or information. Therefore, readers should not place undue reliance on forward-looking statements or information.