Nevada Copper announced on Wednesday that has entered into binding agreements with financing partners for completion of the ramp-up of its underground Pumpkin Hollow project in Nevada.
The financing package includes new cash resources of US$31 million with a blended headline interest rate margin of 7%, of which approximately US$9 million has already been advanced to the company since the beginning of November 2020.
Last month, the company agreed to non-binding terms with its senior lender, KfW IPEX-Bank, for a US$15-million loan with a three-year tenor at an interest rate of LIBOR plus 4.9%.
“The package not only meets the projected requirements of the ramp-up, but provides additional contingency headroom for the company,” said Nevaca Copper CEO Mike Ciricillo.
“With the Main Shaft materials handling system on track for mechanical completion in December, we expect to see hoisting rates increase significantly as planned in the coming weeks during final commissioning.”
The company completed a geotechnical review and elected to reduce the size of certain early stopes in a localized area where initial ramp-up ore is planned.
The Pumpkin Hollow mine was the first U.S. copper mine to come on line over the past decade. The underground mine is capable of producing 50 million lb. of copper during a 13.5-year mine life.
Nevada Copper expects to close the financing package by the end of 2020.
Shares of Nevada Copper surged 16% on Wednesday morning, bringing the company’s market capitalization to $200 million.
This story first appeared on www.MINING.com.