Nevada Copper has announced a series of agreements to finance its 100%-owned Pumpkin Hollow copper project in the US.
The company entered a $115m credit agreement with Germany-based KfW IPEX-Bank. Other financing includes a $35m working capital facility with Concord Resources and offtake agreements with Aurubis, Aurubis Bulgaria and Concord.
Nevada Copper also announced plans to raise about $30m in a public offering and private placement.
The company said funding under the KfW IPEX-Bank facility will take place after the repayment of the existing senior debt facility from Red Kite Mine Finance.
Replacement of the existing senior debt facility from Red Kite with bank project finance, will allow Nevada Copper to reduce its debt service costs, expand its senior debt maturity, and strengthen financial flexibility to manage construction and ramp-up of the underground project.
Nevada Copper CEO Matthew Gili said: “We are pleased to be working with our respective offtake partners and working capital providers, Aurubis and Concord Resources, as we bring the underground project into first production later this year.
“The execution of the underground project is progressing at a strong and steady pace with both underground development and surface works on track. Further, we have responded to our shareholders and intend to accelerate our exploration programme both at the open-pit and our newly defined targets around surface mineralisation contained in the recently expanded land position.”
Pumpkin Hollow is a high-grade skarn/iron oxide copper gold deposit within a porphyry copper district that has a large metal endowment in deposits controlled by Nevada Copper and several other firms.
In April, Nevada Copper filed a new technical report for the Pumpkin Hollow property near Yerington.
The technical report includes a pre-feasibility study for the standalone underground project initially completed in 2017, and a newly completed pre-feasibility study for the open-pit project at Pumpkin Hollow.
The open-pit project has all the material permits required for mine construction and operations. It is in a study phase of development.