Nevada Copper Signs Debt Repayment Deferral, Additional Credit Facility For “Balance Sheet Flexibility”

Nevada Copper Corp. (TSX: NCU) announced this morning the agreement with its senior lender, KFW-IPEX Bank, to extend the debt repayment of the credit facility. The firm also signed a non-binding term sheet with its largest shareholder, Pala Investments, for an augmented credit facility with the firm.

According to the agreement with KFW, the first debt repayments will now be expected to start two years later than originally planned: July 31, 2025 for the US$115-million tranche and July 31, 2024 for the US$15-million tranche.

The extension of the loan also incurred an increase in interest margin: from 0.5% to 2.1% for the US$115-million tranche and from 0.5% to 5.4% for the US$15-million tranche.

As a condition for the amendment, the bank is requiring the company’s subsidiary to raise at least US$40 million in net proceeds from either debt or equity financing.

Related to this, the non-binding agreement with Pala Investments seeks to increase the current credit facility to US$138 million. This amendment includes additional financing of US$41 million to satisfy KFW bank’s condition.

Under the amended credit facility, the maturity date of the credit facility with Pala will also be delayed by two years until 2026. Should the mining firm complete equity financings in the future, the investment company will be entitled to convert up to US$35 million in principal loan into new common shares.

“These combined balance sheet improvements provide [a] significant additional runway for the company as we move forward to complete the ramp-up of our underground operations,” said Nevada Copper CEO Randy Buffington.

The Nevada-focused mining company recently completed its consolidation of shares with a ratio of one post-consolidation share for every 10 pre-consolidation shares.

Nevada Copper last traded at $0.79 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.

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