Base metals producer Nevada Copper on Tuesday announced “transformative” balance sheet improvements, which sent the troubled producer’s stock up 25%.
The owner of the Pumpkin Hollow mine, in Nevada, entered into an agreement with its senior project lender, KfW-Ipex Bank, and a nonbinding term sheet with its biggest shareholder, Pala Investments, to provide additional financing.
The company also secured a significant deferral and extension of its debt facilities.
Newly appointed CEO Randy Buffington said that the balance sheet improvements would provide the company with significant additional runway as it ramped up underground operations at Pumpkin Hollow.
“The ongoing support of two of our major stakeholders provides further validation of the significant inherent value of our copper operations in Nevada and allows us to continue to pursue the growth potential embedded within our asset base,” said Buffington.
Nevada Copper’s stock traded at C$0.99 a share on Tuesday, giving it a market capitalisation of C$183-million. Its share price is still well below its 52-week high of C$31.50 apiece.