Nevada Copper (TSX: NCU) is likely headed for creditor protection. The company this morning provided an update on its financing efforts, indicating that it is struggling to obtain further funding.
The funding is required in order for the company to maintain operations and complete commissioning and ramp up at the Pumpkin Hollow underground mine in Nevada. Discussions with key stakeholders and other investors have reportedly come up dry in terms of funding, with there reportedly being no interest in a change of control transaction either.
Pala Investments and other current investors have reportedly been providing interim funding for operations, however they have indicated that they are likely unwilling to continue funding the development. At the same time, Evgenij Iorich and Stephen Gill, appointees of Pala, have resigned as directors of Nevada Copper. Pala currently holds a 61.66% interest in the company, while Mercuria Holdings has a 17.24% interest.
At this time, Nevada Copper is said to have “substantially depleted” its cash reserves, and a scale down of operations has already begun on site. The company has further indicated that if funding is not obtained urgently it will be forced to enter into creditor protection.
The failure comes despite management paying themselves handsomely in 2023, with CEO Randy Buffington collecting $607,293 in base salary compensation, amid total compensation of $2.1 million last year. CFO and EVP Gregory Martin meanwhile had a base salary of $506,078, and total compensation of $1.4 million.
Nevada Copper last traded at $0.03 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
