Nevada Copper Corp. (TSX: NCU) is pleased to announce that it has completed its previously-announced public offering of 61,950,000 common shares of the Company at a price of $0.40 per Common Share, for gross proceeds of approximately $24.8 million. In addition, concurrent with the closing of the Public Offering, the Company has also completed its previously-announced private placement of an aggregate of 38,052,313 Common Shares for gross proceeds of approximately $15.2 million.
Matt Gili, President and Chief Executive Officer of Nevada Copper, stated:
“We are very pleased with the strong demand from investors to participate in the Company’s equity offering, and would like to thank our existing shareholders and new institutional and retail investors for their continued support. We look forward to closing our new US$115 million project finance facility with KfW IPEX-Bank in the near term and are continuing to focus on commencing production at the Pumpkin Hollow underground project in Q4 this year.”
The Public Offering was underwritten by a syndicate of underwriters led by National Bank Financial Inc. and RBC Capital Markets, acting as joint book-runners, and including Scotiabank, as co-lead underwriter, as well as Arlington Group Asset Management Limited and Numis Securities Limited. The Underwriters have been granted an over-allotment option, exercisable in whole or in part at any time for a period of 30 days after the closing of the Public Offering, to purchase up to an additional 9,292,500 Common Shares, which if exercised in full would increase the total gross proceeds of the Public Offering to approximately $28.5 million.
The Private Placement investors include Castlelake, L.P. and an institutional investor, whereby (i) Castlelake subscribed for and purchased 17,932,313 Common Shares directly or indirectly, and (ii) the institutional investor subscribed for and purchased 20,120,000 Common Shares directly or indirectly. The Private Placement was offered at the Offering Price and on the same terms as the Public Offering.
The net proceeds of the Equity Offering are expected to be used to (i) partially fund the previously-announced cost overrun facility being provided by the Company to its wholly-owned subsidiary, Nevada Copper, Inc., satisfy the minimum equity to debt funding requirement under the Company’s previously-announced senior finance debt facility with KfW IPEX-Bank and cover a portion of the costs associated with the other previously-announced financing arrangements (including a working capital facility and offtake agreements), the construction and ramp-up of the Company’s underground mine at its Pumpkin Hollow Copper Project and general corporate requirements, and (ii) facilitate the acceleration of the Company’s 2019 exploration program in light of the previously-announced significant potential demonstrated by the mineralization discovered at its newly staked claims and extensions to the deposits at the open pit portion of the Project.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended, (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About Nevada Copper
Nevada Copper’s Pumpkin Hollow Project is the only major, shovel-ready and fully-permitted copper project in North America that is currently under construction. Located in Nevada, USA, the Pumpkin Hollow Project has substantial reserves and resources including copper, gold and silver. Its two fully-permitted projects include: the high-grade Underground Project which is in construction with a view to commencement of copper production in Q4 2019; and the Open Pit, a large-scale copper deposit.
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