Nevada Copper Releases Q3 Financials and MD&A; Underground Project Remains on Schedule to Enter Production in Q4, 2019; Addit...
November 15 2019 - 8:45AM
Nevada Copper Corp. (TSX: NCU) (“
Nevada
Copper” or the “
Company’’) announced
today that it has SEDAR-filed its quarterly financial statements
and management’s discussion and analysis for the three and nine
months ended September 30, 2019. Additionally, the Company confirms
that its Pumpkin Hollow underground copper project (the
“
Underground Project”) is expected to enter
production in Q4 2019.
Construction of the processing plant is
materially complete and on schedule. Approximately 95,000 tons of
development ore has been mined and stockpiled on the run-of-mine
pad ready to feed the processing plant. The Company’s overall
estimated construction costs to complete the Underground Project
continue to be within the range announced in the Company’s MD&A
for Q2 2019.
Construction Progress
Update
• Underground Project development proceeding
well:
- Total lateral development to date has now advanced 8,900 feet
on both levels
- 3,000 central ramp has reached the 3,000 level
- 2,850 and 2,770 level stope development access headings
continue to make good progress in preparation for future stope
operations
- Second round of definition drilling is progressing well and
continues to confirm the resource model
- Intermediate maintenance shops have been established on both
the 2,850 and 2,770 levels
- Paste borehole drilling is completed and the paste/cement
reticulation line is installed
- East-North Vent Shaft is within 250 feet of intersecting the
Alimak Raise
- Existing ore stockpile will continue to be added to and will
supplement mine feed during ramp-up period, notwithstanding the
later than originally anticipated completion of the East-North Vent
Shaft
• Surface infrastructure and processing
equipment at the Underground Project advancing to
plan:
- Grinding area is mechanically complete
- Power has been introduced into grinding and flotation
- Tailings radial stacker and coarse ore radical stacker are
complete
- Concentrate and tailings thickeners completed
- Filter press mechanical works have been completed and all
plates loaded in the frames
- Water and air pipework completed
- Approximately 95,000 tons of development ore has now been
stockpiled on surface
Financial Update
• In order to provide the Company
with additional flexibility, the Company has entered into a binding
term sheet for a $30 million credit facility (the “Credit
Facility”):
- Provides additional financial resources to navigate the current
depressed copper price environment, to address the impact of the
delay in East-North Vent Shaft, and to address normal technical
risks associated with ramp-up
- Simple, low-cost line of liquidity with no equity dilution
- Replaces the prior equity backstop facility
Matt Gili, Chief Executive Officer of Nevada
Copper, stated “We are now entering the final stages before the
commencement of production at Pumpkin Hollow. Our team and
contractors are continuing to deliver on schedule as we prepare for
production this quarter. The addition of a credit facility,
non-dilutive to shareholders, provides access to additional
liquidity as we ramp up copper production during the first half of
2020.”
Construction Activity
Images
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Further Details of the Credit
Facility
The Credit Facility is being arranged by Pala
Investments Limited (“Pala”), the Company’s
largest shareholder. The negotiation of the term sheet has been
supervised on behalf of the Company by the independent members of
the Company’s board of directors.
The Credit Facility would be available for an
initial draw of $15 million, and three additional draws of $5
million each at the sole option of the Company, subject to the
satisfaction of certain conditions, including for the additional
draws Pala having syndicated the facility. The Credit Facility
would be a direct obligation of the Company and would not be
guaranteed or secured by any of its subsidiaries. It would have a
maturity date of September 30, 2021. The Credit Facility bears
interest at 9% for the first 12 months of the term and 10%
thereafter, subject to certain fees including a 3% arrangement fee.
There are no common shares, warrants or other convertible
securities issuable in connection with the Credit Facility. The
Credit Facility replaces in its entirety Pala’s $11.4 million
commitment under the equity standby facility that it previously
provided to the Company. Further details are available in the Q3
financial statements.
Qualified PersonsThe information and data in
this news release was reviewed by David Swisher, P.E., SVP of
Operations for Nevada Copper, who is a non-independent Qualified
Person within the meaning of NI 43-101.
About Nevada CopperNevada
Copper’s (TSX: NCU) Underground Project is in construction with a
view to commencement of copper production in Q4, 2019. Located in
Nevada, USA, Pumpkin Hollow has substantial reserves and resources
including copper, gold and silver. Its two fully-permitted projects
include the high-grade Underground Project (under construction) and
a large-scale open pit project.
Additional InformationFor
further information please visit the Nevada Copper corporate
website (www.nevadacopper.com).
NEVADA COPPER CORP.
Matthew Gili, President and CEO For further information
call:
Rich Matthews,VP Investor RelationsPhone: 604-355-7179Toll free:
1-877-648-8266Email: rmatthews@nevadacopper.com
We seek safe harbour.
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