Nevada Copper Files for Chapter 11 Bankruptcy Protection, Appoints Tom Albanese as Chairman
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Nevada Copper and its subsidiaries have filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the Bankruptcy Court of the District of Nevada.
The company has been in discussions with its key stakeholders and other parties to obtain funding and/or enter into a change of control transaction. However, those discussions have failed to result in obtaining such funding or other transaction, and the company has been unable to secure additional interim funding from its key stakeholders. As a result, the company is unable to continue carrying on business.
In conjunction with the Chapter 11 filings, the company requested customary relief to support its employees and critical vendors during the bankruptcy process. As part of this relief, the company is asking the court for permission to continue to pay employee salaries and wages, and to continue other benefit programs regardless of whether amounts were owing prior to the commencement of the Chapter 11 case.
The company has received a commitment for $60 million debtor-in-possession (DIP) financing to provide liquidity through the restructuring period, of which the company is asking that $20 million would be available on an interim basis. The company is seeking approval from the U.S. Bankruptcy Court for the DIP financing.
Through the restructuring process, the company does not expect to continue operations, but does intend to take steps to preserve and protect its assets. The company plans to conduct its activities as a debtor in possession under the jurisdiction of the bankruptcy court and in accordance with the applicable provisions of the bankruptcy code and the orders of the bankruptcy court.
The company said it has appointed Tom Albanese as chair of its board of directors and Randy Buffington has resigned as president, chief executive officer, and as a director.
Nevada Copper is the owner of the Pumpkin Hollow copper project located in Nevada, with substantial reserves and resources including copper, gold, and silver. Its two fully permitted projects include the high-grade underground mine and processing facility and a large-scale open pit PFS stage project.
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