VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jul 16, 2014) - Nevada Copper Corp. (NCU.TO) ("Nevada Copper" or the "Company") is pleased to provide a project and financing update.
Water inflows into the shaft remain limited and ground conditions are good. Grouting requirements have been minimal. Assuming that no unusual ground conditions or water inflows are encountered, sinking is expected to continue at between 6 and 7 feet per day, reaching the main ore haulage level in Q1-2015.
With shaft completion modestly delayed, and while financing discussions are ongoing, the level of all non-shaft related activities, including engineering and construction expenditures, has been being temporarily curtailed. This prudent action allows the Company the time to fully evaluate the financing options that will provide the balance of funding for Stage 1. Shaft construction and related activities, being critical path items, will continue at the current rate. The Company is now targeting the start of ramp up to full ore production in Q2-2016.
Financing Update
Nevada Copper has a current cash balance of US$18 million plus marketable securities of US$4 million. The Company also has a further US$149 million remaining as the undrawn portion of its Orion/Red Kite secured loan facility (see the Company's March 28, 2013 news release for further information). The final draw of the loan facility is subject to certain conditions, including completion of the shaft and arrangement of the balance of funding of Stage 1 project capital. Nevada Copper also has an available US$24 million Caterpillar Financial equipment lease finance facility.
The Company continues to evaluate several financing opportunities including additional debt, precious metal streams, joint ventures and off-take structures to provide the remaining funding for both Stage 1 and Stage 2. Numerous proposals have been received for the Stage 1 underground financing, and term sheets are currently being reviewed in this capacity. Completion of Stage 1 funding is targeted by Q4 2014.
BMO Capital Markets had previously been engaged by Nevada Copper as advisor to assist the Company with the process of identifying and evaluating its strategic alternatives. The objective of this process is to maximize shareholder value, and the engagement remains active.
About Nevada Copper
The Company's advanced stage Pumpkin Hollow project in Nevada consists of a fully permitted 6,500 tons/day Stage 1 underground copper mine development, currently in construction, and a nearby Stage 2, 70,000 open pit project in the permitting phase. Expected average copper production for the first five years is 75 Mlbs/year from the Stage 1 underground mine and 221 Mlbs/year from the Stage 2 open pit mine.
The project is located near Yerington, Nevada, close to road, rail, and power infrastructure, and with all future water supply requirements met.
NEVADA COPPER CORP.
Giulio T. Bonifacio, President & CEO
We seek safe harbor.