Published: July 6, 2022 |

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Nevada Copper revealed it is in continuing discussions with third parties and financing partners as it updated investors on operations at its Pumpkin Hollow underground copper mine in Nevada.

As reported previously, the company is seeking additional funds to continue operations, including the ramp-up of the underground mine.

It comes after a weak rock structure encountered in the main ramp to the East South Zone restricted access to the planned East South stoping zones.

“The company has continued development of its priority heading through the dike structure and into the East North mining zone, which is expected to have significantly higher copper grades and better geotechnical conditions compared with the East South Zone,” it said in a statement, but added: “Although almost complete, additional work is required to finish the dike crossing.”

“The company is in ongoing discussions with third parties and the company’s financing partners, including its senior lender, KfW IPEX-Bank, and Pala Investments Limited (Pala), the company’s largest shareholder, about additional funding and other financial accommodations,” it also told investors.

The company has drawn $11.5 million under the previously disclosed $20 million promissory note from Pala, Nevada Copper said, adding that further draws were subject to agreed use of proceeds and satisfactory arrangements being reached with certain creditors and vendors, which have not yet been reached

While these discussions are ongoing, the company said it is taking measures to “significantly reduce underground mine site and other operational expenditures,” including the suspension of most mining activities. “The company has not made payments due to certain creditors and vendors, including its mining contractor and working capital provider, and is in discussions with them regarding timing of payments and services and supplies. Consequently, the company is in default of its obligations under certain financing and contractual arrangements,” said the company.

Nevada Copper owns the Pumpkin Hollow copper project in Nevada, which has substantial reserves and resources including copper, gold and silver. Its two fully-permitted projects include the high-grade underground mine and processing facility, which is now in the production stage, and a large-scale open-pit project, which is advancing towards feasibility.

Source: Proactive Investors

About Nevada Copper
Nevada Copper is a copper producer and owner of the Pumpkin Hollow copper project. Located in Nevada, Pumpkin Hollow has substantial reserves and resources including copper, gold and silver. Its two fully permitted projects include the high-grade underground mine and processing facility, which is now in the production stage, and a large-scale open pit project, which is advancing towards feasibility status.

To stop by Nevada Copper’s website, CLICK HERE

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