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Nevada Copper announces new loan

Michael McCrae

Kitco News

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(Kitco News) - Nevada Copper (TSX:NCU) said today it arranged a $70 million loan with senior lender, KfW IPEX-Bank, and its largest shareholder, Pala Investments.

The company has already received notices of default from creditors and vendors, including its mining contractor Redpath.

The company said that the loan will provide a cash cushion.

"If implemented, the proposed financing package will provide access to significant further liquidity for the company to maintain the assets at the Pumpkin Hollow underground copper mine and pursue certain projects such as completing the dike crossing and advancing open pit project feasibility study work, and to explore and advance discussions on further financing and strategic options," wrote the company.

If financing can't be settled, Nevada Copper warns that it "…will not be able to continue carrying on business in the ordinary course and may need to pursue proceedings for creditor protection."

Nevada Copper (TSX: NCU) is a copper producer and owner of the Pumpkin Hollow copper project, which is located in Nevada, U.S.

By Michael McCrae

For Kitco News

Contact mmccrae@kitco.com
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