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(Kitco News) – Nevada Copper (TSX:NCU) said today it arranged a $70 million loan with senior lender, KfW IPEX-Bank, and its largest shareholder, Pala Investments.
The company has already received notices of default from creditors and vendors, including its mining contractor Redpath.
The company said that the loan will provide a cash cushion.
“If implemented, the proposed financing package will provide access to significant further liquidity for the company to maintain the assets at the Pumpkin Hollow underground copper mine and pursue certain projects such as completing the dike crossing and advancing open pit project feasibility study work, and to explore and advance discussions on further financing and strategic options,” wrote the company.
If financing can’t be settled, Nevada Copper warns that it “…will not be able to continue carrying on business in the ordinary course and may need to pursue proceedings for creditor protection.”
Nevada Copper (TSX: NCU) is a copper producer and owner of the Pumpkin Hollow copper project, which is located in Nevada, U.S.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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