Mining News Nevada Copper seeks 'financial hardship' exemption
Kitco - Nevada Copper (TSX: NCU) announced a financing on a bought deal basis 643,713,553 units at 15 cents per unit for gross proceeds of $97 million.
Funds will be used to restart its mine and pay down indebtedness. Concentrate production was suspended at the underground project due to COVID-19. The company expects mill restart in August, subject to revision based on impacts of the COVID-19 pandemic and other factors.
Nevada Copper is not seeking shareholder approval for the financing.
"Nevada Copper intends to apply to the TSX, pursuant to the provisions of Section 604(e) of the TSX Company Manual, for a 'financial hardship' exemption from the requirements to obtain shareholder approval of the Offering, on the basis that absent the Offering the Company is in serious financial difficulty due to the lack of available cash and funding resources. The Offering is designed to improve the Company’s financial situation. The application will be made upon the recommendation of the Special Committee and will be based on the determination that the transactions are reasonable for Nevada Copper in the circumstances," writes Nevada Copper.