Nevada Copper Provides Update on Project Financing Process
October 30, 2013 - Nevada Copper Corp. (TSX: NCU) (“Nevada Copper” or the “Company”) is pleased to provide an update on the financing process at its 100% owned Pumpkin Hollow Copper Project located in Yerington, Nevada.
Over the past year Nevada Copper has made considerable progress with receipt of all required permits, and a significant financing for, the Stage 1 underground operation. Earlier in 2013, Nevada Copper executed a US$200 million senior secured loan facility and copper off-take agreement (See March 28, 2013 News Release) and US$24 million equipment finance facility (See October 1, 2013 News Release). When combined with treasury, sunk costs to date as it relates to the production sized head-frame and hoist (completed in April 2013) and current development on the 2,140 foot, 24 foot diameter concrete lined production sized shaft, Nevada Copper has a majority of its project capital financing in place. The balance of any additional funding required for Stage 1 will not be required until Q3-2014 which will allow sufficient time to consider all available financing alternatives.
With the goal of minimizing dilution to our shareholders, the Company has also been reviewing all financing alternatives including additional partnership, joint venture and off-take opportunities to provide funding for both Stage 1 and Stage 2 of the Pumpkin Hollow Copper Project. As part of this process, BMO Capital Markets was engaged by Nevada Copper as financial advisor to assist the Company with the process of identifying, evaluating and considering these opportunities with a goal of securing financing to develop both stages of the Pumpkin Hollow Project while maximizing shareholder value.
Giulio T. Bonifacio, President and CEO of Nevada Copper stated, “As we continue to advance Pumpkin Hollow, management have been actively engaged in pursuing partnership alternatives for financing both Stage 1 and Stage 2 of the Pumpkin Hollow Copper Project and, with the assistance of our advisors, we will continue to evaluate these alternatives as we advance Pumpkin Hollow to production in 2015.”
The Company does not plan to make any future comment on these matters unless there are material developments that warrant such comment.
For additional information about Nevada Copper please visit our website at www.nevadacopper.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, including the likelihood of commercial mining, securing as strategic partner, expanding the mineral resources and reserves and possible future financings are forward-looking statements. Such forward-looking statements and forward-looking information specifically include, but are not limited to, statements concerning: Nevada Copper Corp. (the “Company”) plans at the Pumpkin Hollow Project; the timing of granting of key permits; from the Feasibility Study: the estimated metal production and the timing thereof; capital and operating costs, future metal prices and cash flow estimates derived from the foregoing.
Forward-looking statements or information relate to future events and future performance and include statements regarding the expectations and beliefs of management and include, but are not limited to, statements with respect to the estimation of mineral resources and reserves, the realization of mineral resources and reserve estimates, the timing and amount of estimated future production, capital costs, costs of production, capital expenditures, success of mining operations, environmental risks and other mining related matters. 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: history of losses; 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 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 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 September 19, 2013. 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