Nevada Copper Closes US$20 Million Bridge Loan Facility
August 26, 2014 - Nevada Copper Corp. (TSX: NCU) (the “Company”) is pleased to announce that it has closed a US$20 million bridge loan facility (“Facility”) with Pala Investments Limited (“Pala”).
The initial term of the facility is four months, with up to two additional two month extensions. The Facility will be drawn in US$5 million tranches. The annual interest rate is 10% and with a 2.7% arrangement fee payable during the initial term. The Facility is secured against the Company’s assets, but is subordinate to the security granted in connection with the US$200 million senior credit facility announced by the Company on March 28, 2013.
Giulio Bonifacio, President and CEO, comments: “We are very pleased that Pala, our major shareholder, has provided their continued support by way of this Facility. The Facility provides additional time to fully optimize the funding mix for the balance of Stage 1 capex, while also allowing the Company to further evaluate the various strategic opportunities currently under review.
During the period of the Facility, we will continue sinking of our main production shaft and further advance the Stage 2 Land Bill and permitting.”
The Company has developed a virtual tour of the project which can be experienced by visiting the following link: http://www.nevadacopper.com/s/VirtualTour.asp
About Nevada Copper
The Company’s advanced stage Pumpkin Hollow project in Nevada consists of a fully permitted 6,500 tons/day Stage 1 underground copper mine development, currently in construction, and a nearby Stage 2, 70,000 tons/day open pit project in the permitting phase. Expected average copper production for the first five years is 75 Mlbs/year from the Stage 1 underground mine and 221 Mlbs/year from the Stage 2 open pit mine.
The project is located near Yerington, Nevada, close to road, rail, and power infrastructure, and with all future water supply requirements met.
For further information please visit the Nevada Copper corporate website (www.nevadacopper.com) and the Pumpkin Hollow project website (www.pumpkinhollowcopper.com).
NEVADA COPPER CORP.
Giulio T. Bonifacio, President & CEO
This news release includes certain statements and information that may contain forward-looking information within the meaning of applicable Canadian securities laws. All statements in this news release, other than statements of historical facts, are forward-looking statements. Such forward-looking statements and forward-looking information specifically include, but are not limited to, statements concerning: progress of shaft-sinking and other mine construction activities; the likely date of commencement of commercial mining; expanding the mineral resources and mineral reserves; possible future financings or the securing of a strategic partner; the Company’s plans at the Pumpkin Hollow Project; the timing of granting of key permits; the estimated metal production and the timing thereof; capital and operating costs, future metal prices, cash flow estimates, and economic indicators derived from the foregoing.
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”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements or information include, but are not limited to, statements or information with respect to known or unknown risks, uncertainties and other factors which may cause the actual industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information.
Forward-looking statements or information are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks and uncertainties relating to: the Company’s ability to obtain financing; risks relating to mine construction generally; requirements for additional capital; dilution; loss of its material properties; interest rates increase; global economy; no history of production; future metals price fluctuations, speculative nature of exploration activities; periodic interruptions to exploration, development and mining activities; environmental hazards and liability; industrial accidents; failure of processing and mining equipment to perform as expected; labor disputes; supply problems; uncertainty related to the time required to achieve production status; uncertainty of production and cost estimates; the interpretation of drill results and the estimation of mineral resources and reserves; changes in project parameters as plans continue to be refined; possible variations in ore reserves, grade of mineralization or recovery rates may differ from what is indicated and the difference may be material; legal and regulatory proceedings and community actions; accidents, title matters; regulatory restrictions; permitting and licensing; volatility of the market price of the Company’s common shares; insurance; competition; hedging activities; currency fluctuations; loss of key employees; other risks of the mining industry as well as those factors discussed in the section entitled “Risk Factors” in the Company’s Annual Information Form dated March 25, 2014. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. The Company disclaims any intent or obligation to update forward-looking statements or information except as required by law, and you are referred to the full discussion of the Company’s business contained in the Company’s reports filed with the securities regulatory authorities in Canada. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that could cause results not to be as anticipated, estimated or intended. For more information on Nevada Copper and the risks and challenges of its business, investors should review Nevada Copper’s annual filings that are available at www.sedar.com.
The Company provides no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
For further information call:
VP, Investor Relations & Communications
Toll free: 1-877-648-8266
Robert McKnight, P.Eng., MBA
Executive Vice President & CFO