Nevada Copper is in ongoing discussions with KfW, Pala and other lenders with the aim of executing binding agreements during the month of July 2022. While these negotiations are going on, the company plans to make further draws under the $20 million promissory note from Pala in order to meet its immediate cash needs.
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, it says.
Pumpkin Hollow was the first copper mine to come online in the US over the past decade. The underground mine is capable of producing 50 million lb. of copper annually during a 13.5-year mine life, but most mining activities were suspended at the beginning of the month.
Furthermore, the financing would allow Nevada Copper to pursue certain projects such as completing the dike crossing to gain access to the East North mining zone, the largest mining area within the underground mine.
The company would also be able to work on the Pumpkin Hollow open pit project, which it is advancing towards feasibility status, and to explore further financing and strategic options.