Nevada Copper Provides Update on Public Offering and Announces Filing of Preliminary Prospectus
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
All dollar amounts are presented in Canadian dollars unless otherwise noted.
YERINGTON, Nev., July 15, 2020 (GLOBE NEWSWIRE) -- Nevada Copper Corp. (TSX: NCU) (“Nevada Copper” or the “Company’’) is pleased to announce that it has filed and obtained a receipt for a short form preliminary prospectus with the securities regulatory authorities in each of the provinces of Canada, except Quebec, in connection with its previously announced offering whereby a syndicate of underwriters comprised of Scotiabank, RBC Capital Markets and National Bank Financial Inc., acting together as joint bookrunners, and Haywood Securities Inc. (collectively, the “Underwriters”), 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 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.
Update on Offering
Nevada Copper is pleased to provide the following updates regarding the Offering:
Strong investor demand: The Offering has been oversubscribed and includes a broad base of existing and new shareholders.
- Improved cash position: The Company expects to receive in excess of $48 million (approximately US$36 million) in net cash proceeds upon the closing of the Offering (after full prepayment of the Convertible Loan, as described below, Underwriter fees and expenses of the Offering and assuming no exercise of the overallotment option).
- Simplified capital structure: The Convertible Loan will be retired in full, resulting in a strengthened balance sheet and simplified share capital structure.
- Restart and ramp-up of production: The Company intends to restart production at its Pumpkin Hollow underground project in August and ramp-up operations with a view to achieving full production by the end of the year. Further details and a discussion of certain risks are included in the preliminary prospectus.
Commenting on the Offering, Evan Spencer, Chief Executive Officer, said: