Nevada Copper mulls change of control proposal
Cash-strapped Nevada Copper has received a nonbinding term sheet proposal from a third-party investor, which will result in a change of control of the company.
Together with the previously announced $93-million restart package, the proposed change of control transaction would be sufficient to complete the restart plan of the Pumpkin Hollow underground mine through to positive cashflow, the company reported on Wednesday.
In light of the ongoing consideration of the change of control proposal, main shareholder Pala Investment has said it will provide additional financing support to allow additional time for the evaluation and negotiation of the change of control proposal and the corresponding delay in the closing of the restart financing package.
Pala has offered to provide the company with additional financial support in the form of a $25-million backstop. This is on top of Pala’s $20-million equity investment under the restart financing package, increasing the liquidity available under the previously announced financing package from $93-million to $118-million.
From April 2022, Pala has provided an aggregate of $48.5-million of financing support to the company, including to bridge the closing of the restart financing package.
In a statement, Nevada Copper also provided an update on activities at Pumpkin Hollow.
The company said it had substantially completed the second and most critical dike crossing and that it was continuing lateral development beyond the dike feature in order to access the larger stopes on the higher-grade East North zone.
A tender for a new mining contractor for underground mine development has been issued, with several parties having expressed an interest. The contract will be awarded in December.
Comments
The
functionality
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation