Toronto-listed Nevada Copper said on Tuesday that it was making progress to secure financing before year-end, announcing that it had agreed to nonbinding terms with its senior lender, KfW IPEX-Bank.
The company has agreed to nonbinding terms with KfW for a $15-million senior loan, with a three-year tenor, at an interest rate of Libor plus 4.9%.
The new KfW loan would have a 12-month repayment holiday period. In addition, amortisation and debt service account payments under the company’s existing senior project loan facility with KfW would be deferred until 2023.
The company is also in the process of finalising the specific terms of an additional complementary financing from other lenders, with the aim of securing a combined package of $30-million from KfW and the other lenders.
Shareholder Pala Investments would continue to provide financial support to Nevada Copper until the end of the year, and has provided the company with access to additional liquidity of up to $15-million in the form of a promissory note.