Nevada Copper Announces $97 Million Bought Deal Public Offering; And Proposed Retirement of Convertible Debt
All dollar amounts are presented in Canadian dollars unless otherwise noted.
YERINGTON, Nev., July 13, 2020 (GLOBE NEWSWIRE) -- Nevada Copper Corp. (TSX: NCU) (“Nevada Copper” or the “Company’’) is pleased to announce that it has entered
into an agreement with Scotiabank, on behalf of a syndicate of underwriters including RBC Capital Markets and National Bank Financial Inc., acting together with Scotiabank as joint Bookrunners, and
including Haywood Securities (collectively, the “Underwriters”), pursuant to which the Underwriters have agreed to buy on a bought deal basis 643,713,553 units of the Company (the
“Units”) at a price of $0.15 per Unit (the “Offering Price”) for aggregate gross proceeds of approximately $97 million (the “Offering”).
Each Unit consists of one common share of Nevada Copper (a “Common Share”) and one-half of one Common Share purchase warrant (each whole Common Share purchase warrant a “Warrant”) of Nevada Copper. Each full Warrant will entitle the holder thereof to purchase one Common Share at a price of $0.20 per Common Share, for a period of 18 months following the closing of the Offering.
The Company has granted the Underwriters an option, exercisable at the Offering Price for a period of 30 days following the closing of the Offering, to purchase up to an additional 23,790,000 Units to cover over-allotments (the “Over-Allotment Option”), if any, and for market stabilization purposes, which if exercised in full would result in additional gross proceeds to the Company of approximately $3.6 million. The Over-Allotment Option is exercisable to acquire Units, Common Shares and/or Warrants (or any combination thereof) at the discretion of the Underwriters.
The Units will be offered by way of a short form prospectus to be filed in all provinces of Canada, except Quebec. The Offering is expected to close on or about July 27, 2020, subject to the receipt of all necessary regulatory and stock exchange approvals, including the approval of the Toronto Stock Exchange (“TSX”) and applicable securities regulatory authorities.
The net proceeds from the Offering will be used to fund the Company’s operations, including to continue its previously-announced accelerated mine development plan and to re-start and ramp-up production from its Pumpkin Hollow underground mine (the “Underground Project”), to repay the Convertible Loan (as defined below), to repay other outstanding indebtedness (including short-term financing provided by Pala Investments Limited (“Pala”), currently in the amount of US$9.6 million) and for general corporate purposes. As previously announced, concentrate production is temporarily suspended at the Underground Project due to COVID-19 impacts and the Company expects mill restart at the Underground Project in August, subject to revision based on impacts of the COVID-19 pandemic and other factors.