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(Kitco News) - Nevada Copper (TSX: NCU) informed yesterday that it has agreed to non-binding terms with its key financing partners to provide up to US$93 million of liquidity to the company in order to support the restart and ramp-up of the Pumpkin Hollow copper mine located in Nevada.
The company said that non-binding terms have been agreed with its senior lender, KfW IPEX-Bank, its working capital provider, Concord Resources Limited, its largest shareholder, Pala Investments Limited, another significant shareholder, Mercuria Energy, and its stream and royalty partner, Triple Flag Precious Metals Corp. for a restart funding package of up to US$93 million.
According to the company's statement, the proceeds of the restart financing package are to be used primarily to fund the restart and ramp-up of the underground mine.
Nevada Copper noted that the restart plan is intended to de-risk the path to full-scale production by focusing on de-bottlenecking and completion of critical capital projects, in addition to the build-up of significant stope ore inventory, to facilitate a more efficient ramp-up upon mill restart and to reduce cash burn during the ramp-up period.
In its press-release, the company pointed out that if the restart plan is executed as planned and on schedule, management anticipates that underground production will ramp-up to hoisting rates of approximately 3,000 tons per day ("tpd") in the third quarter of 2023 and then further increase to 5,000 tpd in the fourth quarter of 2023.
CEO Randy Buffington stated, "I am very pleased with the substantial ongoing support of all our key stakeholders. The significant contribution by each of them is a testament to the conviction in the quality of the Pumpkin Hollow project and its intrinsic value.
"The current pause of production allows the company to make meaningful changes to address challenges that were impeding the final stages of the underground mine ramp-up. This is intended to de-risk the business plan and build a more profitable long-term business from the underground mine. We also continue to advance the open pit project at Pumpkin Hollow through the ongoing pre-feasibility study update process."
Nevada Copper is a copper producer and owner of the Pumpkin Hollow copper project. Located in Nevada, USA, Pumpkin Hollow has substantial reserves and resources including copper, gold and silver. Its two fully permitted projects include the high-grade underground mine and processing facility, that is in a ramp-up phase, and a large-scale open pit project, which is advancing towards feasibility status.
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